Rachel Kubanda examines the financial pressures facing restaurant franchisees in her latest article for the American Bankruptcy Institute Journal.

The quick-service restaurant industry continues to face a challenging environment, with rising food and labor costs, high commercial rents, changing consumer spending habits, third-party delivery fees, and significant debt obligations putting pressure on franchise operators. Rachel highlights several recent subchapter V bankruptcy filings involving Crust Pizza franchisees in Texas, even as the Crust Pizza brand itself continues to expand.

The article explores the widening divide between franchisors and individual franchisees, as well as the challenges that can arise when fixed costs and debt obligations leave operators with little room to absorb declining sales or rising expenses. Kubanda also discusses the role of SBA-backed loans and how subchapter V bankruptcy can provide qualifying small businesses with an opportunity to restructure debt, negotiate with lenders and landlords, address overdue rent, and continue operating while working toward a repayment plan.

While bankruptcy does not guarantee a restaurant’s survival, Kubanda explains how subchapter V can provide struggling franchisees with an opportunity to reorganize and pursue more sustainable financial terms.

Read the full article here.