---
title: "Court Sides Against Applebee’s Parent Company in Dispute Over Franchise Contracts"
url: https://burnaze.com/article/86491372-8e3f-4f64-b3ed-a2c5c0b9ada3
source: "1851 Franchise"
original_url: https://1851franchise.com/court-sides-against-applebees-parent-company-in-dispute-over-franchise-contracts-2708002
category: "Casual dining"
industry: "Restaurants"
segment: "Casual dining"
topics: ["Regulation & legal"]
published: 2018-09-27T21:16:35.000Z
modified: 2026-11-01T02:31:29.775Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/0efa36c1def2cde5e76a20c4f8acebdc754.jpg
---

# Court Sides Against Applebee’s Parent Company in Dispute Over Franchise Contracts

**TL;DR:** A Delaware bankruptcy court sided against Applebee's parent company, Dine Brands Global, in its dispute over franchise contracts with RMH Franchise Holdings. The court ruled that Dine Brands did not provide clear notice of terminating its franchise agreement with RMH prior to its bankruptcy filing.

*originally published in 1851 Franchise on 2018-09-27. [Read the original](https://1851franchise.com/court-sides-against-applebees-parent-company-in-dispute-over-franchise-contracts-2708002).*

## Story

A Delaware bankruptcy court has sided against Applebee’s parent company, Dine Brands Global, in its efforts to take control of 160 units owned by RMH Franchise Holdings, who filed for bankruptcy protection in May.

According to Restaurant Business Online, Dine Brands argued that RMH Franchise Holdings franchise agreement had already been effectively terminated by then, but a judge ruled that Applebee’s corporate parent didn’t provide the required “clear and unambiguous notice” that it was terminating its franchise agreement with RMH prior to its bankruptcy filing

RMH Franchise Holdings, the 1,900-unit restaurant chain’s second-largest franchisee, can now use the units to appease creditors by either selling or shutting them. The franchisee currently owes Applebee’s International Inc. $14.2 million in royalty fees and advertising costs, the article noted.

## Entities

- 1851 Franchise (publication)
- Restaurants (sector)
- Applebee's (company)
- Dine Brands Global (company)
- dispute resolution (topic)
- bankruptcy court (topic)
- Delaware bankruptcy court (regulator)
- franchise contracts (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/court-sides-against-applebees-parent-company-in-dispute-over-franchise-contracts-2708002). Summarized by Burnaze (https://burnaze.com/article/86491372-8e3f-4f64-b3ed-a2c5c0b9ada3).