Applebee’s is suing a franchise group for millions after the closure of eight location in the Kansas City area last October. The lawsuit includes a member who faced another multi-million-dollar lawsuit who had previously closed a handful of locations in Kansas City.
Court records filed with the District of Kansas show that Applebee’s has filed suits against William J., William G. and Sophia K. Georgas as well as Steven B. Steinmetz a former franchisee who abruptly closed a handful of locations in the Kansas City metro.
Court documents indicated that Applebee’s has sued the Georgas’ and Steinmetz for breach of contract after employees were notified via email in late October that they would need to find new jobs.
As a part of the franchise agreements, the four were required to make regular payments to Applebee’s for royalties through November 2027. Applebee’s sent a notice of termination of the Franchise agreement when they were notified of the closures of the eight stores. Applebee’s is suing for a total of 12.5 million. Applebee’s claims that the franchisees broke their agreement and shirked their financial obligations which includes rent for all eight locations.
In 2018, Applebee’s sued William J. Georgas for significant brand and reputational damage following a racial profiling incident at the Independence Center location which drew nationwide attention. Georgas abruptly closed that and six other locations, all without the approval of Applebee’s.
Ref: KCTV
