Kansas City Residents Outraged as Applebee’s Shuts Down Multiple Franchise Locations Amid Legal Dispute

Kansas City Residents Shocked by Applebee’s Franchise Closures

In a surprising turn of events, the beloved casual dining chain, Applebee’s, has found itself in a legal battle following the sudden shutdown of eight of its franchise locations in the Kansas City metro area just last October. This is stirring quite a buzz among locals, who are now wondering what’s next for their favorite neighborhood hangouts.

What Went Down?

According to federal court records filed in the District of Kansas, Applebee’s is suing franchise group members, including William J. Georgas, William G. Georgas, Sophia K. Georgas, and Steven B. Steinmetz. The lawsuit is primarily based on claims of breach of contract after a mass email informed employees that they should begin searching for new jobs as their locations would be closing their doors. Can you imagine the shock felt by those workers?

The closures happened just after the end of October, catching many off guard. As per the franchise agreements, these individuals were responsible for making consistent payments to Applebee’s until 2027. After receiving notice of these closures on October 30, Applebee’s wasted no time in sending a termination notice for the franchise agreements.

A Pricey Issue

Now, Applebee’s is suing for a whopping $12.5 million, claiming that the franchisees left them in a lurch by failing to meet their financial obligations. This total includes rent for all eight affected locations, which had to have raised concerns for many regarding job security in the area.

A Past of Legal Tangles

This legal battle isn’t the first for some of the franchisees involved. Back in 2018, Applebee’s also filed a lawsuit against William J. Georgas over a different incident that caused significant brand and reputational damage. That case was tied to a highly publicized racial profiling incident at the Independence Center location, which had sent shockwaves throughout the community. Ironically, that same location, along with six others under Georgas at the time, faced closure, all without prior approval from Applebee’s.

The Company’s Stance

In light of these abrupt closures, Applebee’s President Tony Moralejo addressed the situation, expressing his belief that the Kansas City area remains “a great neighborhood for Applebee’s restaurants.” As he informed residents through local media, “This situation is unfortunate,” indicating that the company is actively exploring options for the future of these restaurants. For now, though, two Applebee’s locations continue to welcome customers: the one in Gladstone at 6069 NE Antioch Rd. and another in Blue Springs at 1100 NW Highway 7.

What’s Next?

For frequent diners at the now-closed locations, this news is particularly tough to swallow. Many loyal customers may have formed special memories around their favorite Applebee’s table. While the legal proceedings unfold, locals can only hope that their cherished dining spots find a way to bounce back or that new opportunities arise for other restaurants to step in and fill the gaps.

As this saga continues, residents are left to ponder the future of casual dining in their community. Will more restaurants face the same fate, or can they weather this storm? Only time will tell!