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View Diary: Denny's CEO not happy about franchisee's Obamacare surcharge threats (214 comments)

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  •  Can franchise top level folks 'discontinue' (7+ / 0-)

    franchises?  Cut people like Metz loose and force them to discontinue using the Denny's name on their restaurants for damaging the brand?

    •  If someone comes forward (3+ / 0-)
      Recommended by:
      Catte Nappe, Eyesbright, sethtriggs

      and is willing to take over the franchise, they probably could -- might depend on the contract and if there's wording in there to allow franchisee's contracts to be terminated for cause (or if there's any sort of annual renewal period). Oftentimes you'll see an "Under New Management" sign at a restaurant, or in some states you'll see the Alcohol Beverage Control (ABC) license application in the window for transfer to a new owner -- that's often a change of franchisee, either because the original one decided to get out of the business or wasn't producing enough revenue.

      "If we ever needed to vote we sure do need to vote now" -- Rev. William Barber, NAACP

      by Cali Scribe on Tue Nov 20, 2012 at 09:38:39 AM PST

      [ Parent ]

    •  Dr E - it's a contract issue (0+ / 0-)

      And without reading the franchise contract there is no way for us to know. There are clearly ways that the contract can be breached, but we don't know what they are. In addition, the franchisee spends a considerable sum up front to open the restaurant, so they have considerable rights.

      "let's talk about that"

      by VClib on Tue Nov 20, 2012 at 10:31:29 AM PST

      [ Parent ]

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