The symbiotic relationship between franchisor and franchisee becomes most evident when a large franchisee is stressed.

The second-largest franchisee of Applebee’s Neighborhood Grill & Bar restaurants filed bankruptcy on May 8, 2018, in In re RMH Franchise Holdings, Case No. 18-11092 (Bankr. D. Del. 2018). RMH—and its four other affiliated companies that filed bankruptcy—own and operate 160 franchises in 15 states, which represents about 10 percent of the Applebees locations. The companies filed bankruptcy to save their locations, maintain their good will, and to restructure their debt that almost caused them to lose their locations.

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