Wendy’s Co. and Pizza Hut LLC are raising concerns over their largest franchisee’s efforts to sell its assets in bankruptcy court. NPC International operates 392 Wendy’s and 1,200 Pizza Huts across the country filed Chapter 11 bankruptcy on July 1, 2020 with a plan to sell its assets. The franchise agreements are its most valuable assets it is attempting to sell. Both Wendy’s and Pizza Hut have warned in filings in the U.S. Bankruptcy Court in Houston that they are uncomfortable about the sales of the franchise pacts to third parties. All bids are due on October 20, 2020 and November 5, 2020.
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