BRHornet45
01-07-2011, 10:36 PM
sons 44 Pizza Hut locations in Baton Rouge and New Orleans suddenly closed this past Monday because the franchise owner wouldn't pay his royalty and tax bills on time (if ever). This is a rare situation for a corporation to close THAT many locations all at once, but apparently this particular franchise owner has very long history of dragging ass to pay his bills and the company finally had enough of it. Don't get too excited though Papa Johns and Dominos in the area, Pizza Hut does say they intend to open many of the stores as corporate locations in the future.
sons my question is this ... if you own 44 Pizza Hut locations then you are obviously pretty damn well off and have a ton of cash flowing through your accounts ... why in the hell would you be that damn cheap and lazy with paying the most important bills that keep your business alive???
Pizza Hut Inc. said Wednesday that it will invest $10 million in its business in New Orleans and Baton Rouge, La., to make them flagship markets for the company.
The company said it will create state-of-the-art restaurants in new locations there in the next year and a half working in partnership with the National Urban League and the Urban League of Great New Orleans.
The chain's restaurants in the region used to be run by a franchisee who couldn't meet tax and corporate financial obligations and the restaurants were closed. The company said it is committed to rehiring former employees.
Pizza Hut said it has begun to identify locations for the new restaurants it will open in New Orleans and Baton Rouge this year and next.
“Throughout the relationship between Lundy Enterprises and Pizza Hut, Lundy Enterprises repeatedly failed to comply with its obligations to Pizza Hut under the Franchise Agreements including, but not limited to, its obligations to timely pay royalties, advertising fees and other related fees to Pizza Hut,” according to court documents.
http://www.bloomberg.com/news/2011-01-05/pizza-hut-invests-10-million-in-la-.html
http://www.fox8live.com/news/local/story/Dozens-of-Pizza-Hut-restaurants-closing-because/b1QH1QrdqEqnPu4beuDKGQ.cspx
http://www.franchisetimes.com/images/editorial/Feb08_p46_01.jpg
sons my question is this ... if you own 44 Pizza Hut locations then you are obviously pretty damn well off and have a ton of cash flowing through your accounts ... why in the hell would you be that damn cheap and lazy with paying the most important bills that keep your business alive???
Pizza Hut Inc. said Wednesday that it will invest $10 million in its business in New Orleans and Baton Rouge, La., to make them flagship markets for the company.
The company said it will create state-of-the-art restaurants in new locations there in the next year and a half working in partnership with the National Urban League and the Urban League of Great New Orleans.
The chain's restaurants in the region used to be run by a franchisee who couldn't meet tax and corporate financial obligations and the restaurants were closed. The company said it is committed to rehiring former employees.
Pizza Hut said it has begun to identify locations for the new restaurants it will open in New Orleans and Baton Rouge this year and next.
“Throughout the relationship between Lundy Enterprises and Pizza Hut, Lundy Enterprises repeatedly failed to comply with its obligations to Pizza Hut under the Franchise Agreements including, but not limited to, its obligations to timely pay royalties, advertising fees and other related fees to Pizza Hut,” according to court documents.
http://www.bloomberg.com/news/2011-01-05/pizza-hut-invests-10-million-in-la-.html
http://www.fox8live.com/news/local/story/Dozens-of-Pizza-Hut-restaurants-closing-because/b1QH1QrdqEqnPu4beuDKGQ.cspx
http://www.franchisetimes.com/images/editorial/Feb08_p46_01.jpg