Franchisees Unite to Purchase Franchisor

Sixty franchisees forced The Ground Round restaurant chain to file bankruptcy on Feb. 19, 2004. The same franchisees, 4 months later, became their own franchisor. They bought the franchise assets out of bankruptcy, including all the franchise agreements, the development agreements, 42 trademarks, and 38 prime leases which they assigned to the subtenants. The franchisees formed a for-profit cooperative, reduced their own franchise royalties, and obtained traditional bank financing. They achieved their goal by maintaining a united front, developing a unique governance structure, and maintaining a vision for operating profitably unlike anyone else in the casual-dining restaurant sector.

24 minute read September 10, 2004 at 10:51 AM

Craig Tractenberg

Sixty franchisees forced The Ground Round restaurant chain to file bankruptcy on Feb. 19, 2004. The same franchisees, 4 months later, became their own franchisor.

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Franchisees Unite to Purchase Franchisor

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Real Property Law

Entrepreneurship Is Already Hard: Rising Above Extraordinary Personal Crises to Build an Award-Winning Professional Reputation

Applying the Zero Trust Model to Manage Risks of Agentic AI

California’s AI Transparency Stack: From State Obligation to Adoption Strategy