The CARES Act has amended the Bankruptcy Code to provide an expedited and easier version of a business bankruptcy proceeding. We now have “Subchapter 5” for small business and individual debtors. This process fulfills a sweet spot for small franchisors and franchisees. It anticipates a Chapter 11 type result, without the administrative headaches and expense,

The long awaited ruling in Mission Products Holding, Inc. v. Tempnology LLC (In re Tempnology) has simplified the intersection of bankruptcy and trademark law, with the court holding that rejection “constitutes a breach” of an executory contract and not an irrevocable termination of the contract.

Tempnology licensed clothing and accessories to Mission Products, 

Struggling franchisors who violate state franchise disclosure laws should not assume that the filing of bankruptcy by the franchisor will bring relief from the claims of wronged franchisees. A Bankruptcy Court in North Carolina recently ruled that Michael and Kathy Butler, husband and wife owners of PRS Franchise Systems, LLC were personally liable to one