Franchise Agreements in Bankruptcy Cases and Business Restructurings—The Problems and Issues that Bankruptcy Can (and Cannot) Solve
12:00 pm - 1:15 pm PT | 3:00 pm - 4:15 pm ET
Bankruptcy and other forms of business restructuring can throw agreements that existed prior to the bankruptcy or restructuring into chaos, and franchise and licensing agreements are no exception. A 2019 Supreme Court case, Mission Product Holdings, Inc. v. Tempnology, LLC, demonstrated that when a licensor goes bankrupt, the licensee’s rights to the license (in that case a trademark) may not necessarily end. This workshop will assess the impact of that case on franchise agreements, and will also look at issues that arise when franchise agreements are terminated before the bankruptcy filing, the franchise related issues involved in the restructuring of large multi-unit franchisees both inside and outside of bankruptcy, and the impact of large restructurings on the franchisor’s and franchisee’s ability to obtain credit. The workshop will also address the different types of issues that bankruptcy can—and cannot— effectively address.