Restructuring Franchise Businesses in Chapter 11: Enhancing Lender and Franchisor Positions
Assumption, Rejection, and Assignment of Franchise Agreements; Protecting Cash Collateral; Rejection Damages; Intercreditor Issues
A live 90-minute CLE video webinar with interactive Q&A
This CLE webinar will discuss assumption, rejection, and assignment of franchise agreements, licensing agreements (including IP licenses), service contracts, noncompetition agreements, and unexpired leases, as well as related issues such as adequate protection, use of cash collateral, damages caps, franchisor as landlord, and intercreditor issues in the context of a franchisee bankruptcy. The panel will offer insights, practice pointers, and strategies on these key issues in franchisee bankruptcy cases that can be applied and adapted in many other cases.
- Overview of franchise structures
- Section 362 and Section 341issuess: applicability of automatic stay
- Section 363 sale issues
- Assumption, rejection, and assignment of franchise agreements under Section 365
- Trademark rights
- Franchisor's veto power
- Cross default provisions in multiple agreements
- Curing defaults
- Lender issues
- Cash collateral and rights of franchisor
- Intercreditor issues
The panel will review these and other key issues:
- When is the franchise agreement an executory contract?
- What type of intercreditor issues arise between franchisor and lenders?
- May the debtor assign its franchise agreement to a third party without the franchisor's consent?
- What is the effect of Mission Product Holdings Inc. v. Tempnology L.L.C., 139 S. Ct. 1652 (2019)?
Christopher M. Desiderio
Mr. Desiderio is a member of Nixon Peabody’s Bankruptcy & Financial Restructuring group, where he represents... | Read More
Mr. Desiderio is a member of Nixon Peabody’s Bankruptcy & Financial Restructuring group, where he represents debtors, creditors and official committees in all aspects of Chapter 7 and 11 cases. Representative clients include distressed companies, partnerships, banks, landlords, creditor’s committees and trustees in national and regional corporate bankruptcies.Close
Mr. Fong is counsel in the Bankruptcy & Financial Restructuring group and is located in the firm’s New York... | Read More
Mr. Fong is counsel in the Bankruptcy & Financial Restructuring group and is located in the firm’s New York office. He is involved in all facets of domestic and international corporate reorganizations, workouts and out-of-court restructurings.Close
Richard C. Pedone
Partner, Team Leader, Bankruptcy & Financial Restructuring
Mr. Pedone is a member of Nixon Peabody’s Business & Finance Department and the leader of the Bankruptcy... | Read More
Mr. Pedone is a member of Nixon Peabody’s Business & Finance Department and the leader of the Bankruptcy & Financial Restructuring practice. He represents distressed companies, strategic buyers of financially troubled businesses, purchasers of distressed debt, creditors and other parties in the financial restructuring and bankruptcy processes. Many of the matters that Mr. Pedone handles involve litigated disputes, allegations of fraud and insolvency proceedings pending in multiple jurisdictions.Close