Bloomberg Law Quotes Partner Ben Struby on Franchisee Bankruptcies, What to Look For
Bloomberg Law quoted Partner Ben Struby in a piece covering recent notable fast food franchisee bankruptcy filings. Amid rising labor and food costs, ballooning interest rates and demands for upgrades and operational improvements, margins for many fast-food chain operators have been tight.
Struby said he had been increasingly telling franchisor clients to "keep a new eye on franchisees" for signs of trouble that might require intervention. Inconsistencies, like delayed fee payments or sudden failure to communicate, can be cause for concern. A possible hike in franchisee bankruptcies is "something to be concerned about," he said.
Read the full article here [SUBSCRIPTION REQUIRED]: Fast Food Franchisee Bankruptcies Portend Industrywide Struggles.