Even the famous Golden Arches aren't safe from the growing number of bankruptcies this year. Since the beginning of 2023, Corner Bakery
two of the biggest Burger King franchisees, and a Popeyes franchisee have all filed for bankruptcy. But while these brands blamed their problems on things
like inflation and fewer customers, the latest bankruptcy filing by a McDonald's franchisee is the result of legal problems that have been going on for more than a year.
Rice Enterprises LLC is based in Pittsburgh, Pennsylvania, and right now it runs eight McDonald's restaurants in and around Pittsburgh.
The franchisee filed for bankruptcy last week as it continues to deal with legal issues and the financial effects of a former manager's rape of a 14-year-old female employee
This is a rare bankruptcy filing by a McDonald's franchisee. The Iowa-based Brown Customer Delight Group Inc.,
Walter Garner, the former manager of Rice Enterprises, was able to get a job as a manager at one of the franchisee's locations even though he had been in jail for molesting a 10-year-old girl.
This was reported by CBS. Garner has admitted to raping the woman, but Rice Enterprises and McDonald's are still fighting the case in court.
Now that Rice Enterprises has filed for bankruptcy, it says it plans to use the process to restructure its debt, keep its assets
get more breathing room and time "to reduce litigation expenses and maximize the value of its estate for all creditors and interests,"