Pizza Hut Franchisee Bankruptcy Leads to Sale of 77 Locations

After months of financial and legal turmoil, 77 Pizza Hut restaurants formerly operated by franchisee EYM Group have been sold to new owners. According to a report by Nation’s Restaurant News (NRN), the sale was finalized following a January 28 auction in Dallas and was managed by National Franchise Sales (NFS). This development follows EYM Group’s Chapter 11 bankruptcy filing in July 2024.

EYM Group, once a major Pizza Hut franchisee with 142 locations across Illinois, Indiana, Georgia, South Carolina and Wisconsin, entered bankruptcy with more than $21 million owed to Manufacturers Bank and $2.25 million owed to Pizza Hut. The company was founded in 2008 by Eduardo Diaz, former president of McDonald’s Mexico, and also operates Denny’s and Panera Bread units across seven states.

As NRN reports, 18 of the 77 sold stores were re-acquired by Pizza Hut itself. The remaining units were picked up by various buyers after NFS implemented a targeted sales strategy. Despite reporting negative earnings before interest, taxes, depreciation, and amortization (EBITDA) for about half of the restaurants, NFS generated substantial interest by highlighting the 38 best-performing stores and crafting a supplemental strategy for the remaining 39.

“Situations like these require the right mix of strategy, industry insight and buyer relationships — something we take pride in bringing to the table,” said Alan Gallup, the NFS partner who led the asset recovery team. “With escrow closed and ownership transitioned, these locations are now poised for growth under their new operators.”

The sale marks the end of a difficult chapter for EYM Group. The franchisee first took legal action against Pizza Hut in March 2024, claiming breach of contract after a forbearance period ended. Pizza Hut responded in June with its own lawsuit alleging EYM failed to pay royalties on time, and abruptly shuttered 15 of EYM’s restaurants in Northwest Indiana and Central Ohio.

With new ownership in place, the 77 Pizza Hut restaurants now have an opportunity to reset and rebuild under operators who are stepping in with growth in mind.