Industry Update
Two Franchise 500 franchisors face bankruptcy.
In early February, ByeByeNow.com Travel Inc. president Peter Kowal
informed franchisees in the system that the travel agency had filed
for Chapter 11 protection. The company's main plan now is to
find a buyer for its franchise arm.
"We're operational here as the franchisor," says
Kowal. "We continue to offer services. We plan on continuing
those services by having more horsepower, having more resources
available to us and ultimately growing [the franchise]
again."
At press time, ByeByeNow.com (No. 298 in our 2001 Franchise
500®) had received several letters of intent from buyers
interested in the franchise. Before the franchise can be sold, the
bankruptcy court must approve the deal. After the sale, current
ByeByeNow.com franchise agreements will remain valid, and
franchisees will have the option of signing with the new
franchisor.
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On February 20, pet-food delivery franchise Whiskers &
Paws Catering Inc. (No. 228 in our 2001 Franchise 500®) filed
for Chapter 7 bankruptcy in the United States Bankruptcy Court,
District of Nevada.
At press time, the company and its representative were not
available for comment. All nongovernmental creditor claims must be
filed with the bankruptcy clerk's office by June 27.