Kansas City Applebee’s Franchises Shut Down, Leading to Federal Lawsuit Against Owners

Kansas City Applebee’s Franchises Close, Lawsuit Filed

In a surprising turn of events, eight Applebee’s franchises in the Kansas City area abruptly shut their doors, leaving employees and customers stunned. The closures, which took place on October 30, have led to a federal lawsuit against the former owners and operators of the franchises.

A Legal Tangle with Applebee’s Franchisor

According to court documents, Applebee’s Franchisor LLC is facing off against William J. Georgas, his son William G. Georgas, and Steven B. Steinmetz, along with several trusts that they manage. The lawsuit claims that the Georgas family violated their contracts and leases, which has sparked this dramatic legal showdown.

It seems that the Georgas family was once at the helm of these eight franchises, which included popular locations in Raytown, Lee’s Summit, and Overland Park. Applebee’s feels the sting of the closures, alleging that Georgas now owes nearly $4.5 million for lost future royalties and advertising fees. Additionally, Applebee’s is seeking an extra $3.6 million for breaches of lease agreements tied to locations in Leavenworth, Olathe, Mission, and Overland Park after Georgas allegedly stopped paying rent just days prior to closing shop.

A History of Controversy

William J. Georgas had been involved with Applebee’s franchises since taking over between 2015 and 2017. His contracts were quite lengthy, with a 20-year agreement for seven of the locations and a 10-year contract for another site on Metcalf. However, this isn’t the first round of legal troubles for Georgas.

In fact, he faced litigation from Applebee’s back in May 2018 after abruptly shutting down seven other franchises in the area. These closures came in the wake of a racially charged incident at an Independence location, which had garnered significant negative media attention. This incident involved two Black women being accused of trying to leave without paying their bill, leading to an outcry and the eventual firing of three employees. The Applebee’s franchise in Independence closed shortly after.

What’s Next?

Now, the controversy surrounding Georgas continues. Applebee’s claims that the mass closure of these franchises is not just a business decision but a blow to the brand’s reputation. “Due to the mass closure of the Restaurants, including without limitation the high-profile and controversial circumstances behind one or more of the closures, Applebee’s reputation and brand have been harmed,” the company’s lawyers stated in the prior lawsuit.

All parties involved in the latest lawsuit currently reside in Greenwich, Connecticut, and the trial is set to take place in Kansas City, Kansas. However, not all Applebee’s locations were affected by this recent turmoil. The restaurants located at 1100 NW Highway 7 in Blue Springs and 6069 NE Antioch Road in the Northland remain open, serving customers as usual.

Community Impact

This sudden closure has left many employees without jobs and raised questions among the community. Applebee’s has been a staple in casual dining, and losing multiple locations in such a quick swipe puts a strain on the local economy and dining options. For many, the Applebee’s franchise has been synonymous with good food and a relaxed atmosphere.

As these legal proceedings commence, the community will be watching closely. How will Applebee’s navigate this current crisis, and what will the future hold for the franchises caught up in this legal nightmare? Stay tuned as more details unfold in this developing story.