The publicly traded parent of the Applebee’s Neighborhood Grill & Bar restaurant chain wants a court to clear a path for it to possibly seize its restaurants from a bankrupt franchisee, saying that the operator is delinquent on royalty and advertising payments but continues to benefit from trademarks such as “Eatin’ Good in the Neighborhood,” WSJ Pro Bankruptcy reported. Dine Brands Global Inc. on Wednesday asked the U.S. Bankruptcy Court in Wilmington, Del., to lift the automatic stay of RMH Franchise Holdings Inc., which filed for chapter 11 reorganization May 8. Applebee’s said it is owed almost $12.2 million by the franchisee, according to court papers. Dine Brands wants the stay lifted to allow it to enforce — through a lawsuit if necessary — its franchising rights. The company could then prohibit RMH from using Applebee’s trademarks, force the franchisee to transfer its real estate leases and give up restaurants’ premises to Applebee’s and require the sale of fixtures, equipment and inventory in the restaurants to Applebee’s.
