How is it some Bennigan's franchisees are staying open while corporate has shut down?

Question

Are they just looking to use up their food inventory before giving up the ghost? How can those restaurants continue to operate without corporate? Are they just going to live on independently, perhaps under a different name? I know many in Michigan still are open, and the rumor is, plan to stay open indefinitely.

Answer 1

You have to think outside the box for a minute.  Think of a franchisee as basically paying an annual fee to use a name.  That is essentially what it is.  So a seperate company is paying the Bennigan's corporate $20,000 per year to use the name on their locations of the restaurant.  That separate company may have 2, 5, 18, etc locations.  They manage their own budgets, set policies and are pretty much free to do as they wish with hiring.  They have the menus, the decor, and the name  that they basically rent yearly.  Whether or not the are successful is up to them.

Answer 2

Near the bottom of the article it is about the franchise location in my area and their say on how they can stay open.