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Bankruptcy Code Amendments Alter Franchise Case Strategies

By Craig Tractenberg and Richad C. Pedone

The substantial amendments made by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) to the Bankruptcy Code have had a significant impact on the dynamics of franchisee bankruptcies. The BAPCPA was generally intended to accelerate Chapter 11 'reorganizations' and provide relief to certain constituencies in the bankruptcy process (eg, landlords). This article focuses on the nuances of the BAPCPA's impact in franchisee bankruptcy cases.

'Simple' Franchise Relationships Often Contain Complex Legal Structures

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