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Stock impact report

Decades-old fast-food chain faces closure fight with franchise owner [Yahoo! Finance]

Jack In The Box Inc. (JACK) 
Last jack in the box inc. earnings: 2/19 04:05 pm Check Earnings Report
Company Research Source: Yahoo! Finance
The fast-food chain has filed for a restraining order in Washington State court to stop franchisee AJP Enterprises from shuttering the restaurants across the Seattle area. According to court filings , the franchisee had 30 days to rectify the default but chose not to. Despite the notice, AJP Enterprises informed Jack-in-the-Box of its intention to begin closing the remaining locations. Shutdowns are expected to occur by April 22 unless the default notice is withdrawn, according to Restaurant Business Online Jack-in-the-Box argues that the franchisee has “no contractual right” to close its restaurants. Therefore, it is seeking immediate court intervention. The reasoning behind the move is that unauthorized closures could harm the brand equity, disrupt local markets, and create broader operational risks. Franchise law experts at Franzy have noted that such agreements usually limit a franchisee's ability to one-sidedly shut down locations, especially when financial obligations Show less Read more
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