Pizza Hut franchisee shuts down 15 locations in northwestern Indiana abruptly closing their doors earlier this month. These 15 restaurants, operated by the franchisee EYM Group, have left many customers and employees in the lurch, as reported by The Times of Northwest Indiana.
The sudden closures come amid an ongoing legal battle between EYM Group and Pizza Hut. Both parties are pointing fingers, accusing each other of breaching contracts. On June 7, Pizza Hut filed a lawsuit claiming that EYM Group had violated its franchise agreement and a forbearance agreement reached in 2023.
Pizza Hut’s lawsuit alleges that EYM Group has a “history of late paying fees owed to Pizza Hut and other interested entities pursuant to the Franchise Agreements,” and accuses EYM of defaulting on multiple occasions. EYM Group, however, isn’t taking these accusations lying down. They have fired back, accusing Pizza Hut of failing to uphold its end of the bargain.
Among EYM’s allegations are that Pizza Hut “failed to adapt to modern business practices” and “keep up with new technology.” According to EYM, this has negatively impacted their financial situation, already strained by inflation and the COVID-19 pandemic.
It’s worth noting that this legal skirmish could potentially affect dozens of other Pizza Hut locations operated by EYM Group. A spokesperson for Pizza Hut told FOX Business, “While a few EYM franchise-operated restaurants in Indiana have temporarily closed, Pizza Hut remains committed to providing outstanding service and products to our valued customers.” The spokesperson also mentioned that the company is working on transitioning these locations and expects many of them to reopen soon.
EYM Group, which also operates Pizza Hut restaurants in Georgia, Wisconsin, and other states, manages franchises for other fast-food brands like Denny’s, KFC, and Panera Bread. This isn’t their first rodeo, but the sudden closures in Indiana signal that something has gone seriously awry.
The ripple effect of these closures is significant. Employees are suddenly out of work, and loyal customers are left without their local pizza joint. The legal battle raises questions about the stability and reliability of franchise operations, especially when both sides can’t seem to agree on who’s at fault.
This entire episode is a stark reminder of the complexities and challenges inherent in franchise operations. When corporate and franchisee relations sour, it’s the employees and customers who often suffer the most. Pizza Hut and EYM Group need to find a resolution quickly to prevent further disruption and restore confidence in their operations.
As the legal proceedings unfold, the spotlight is on both Pizza Hut and EYM Group to see who will come out on top and how they plan to move forward. One thing is clear: the fallout from this dispute has already caused significant damage, and the sooner it’s resolved, the better for everyone involved.
Stay tuned, as this is far from over. The fight for pizza supremacy in northwest Indiana has just begun, and it’s bound to get even messier.
