Restructure of Franchisor's Capitalization

09/20/2009

A small franchise company found itself with too much debt, too many company stores, and insufficient cash flow to meet threats from a new national competitor. Chuck Modell helped the client develop and implement a $10 million restructure of the business that involved the sale of several company-owned stores, and refinancing of existing debt to reduce the client's debt service obligations by 50 percent a month.