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Bankruptcy May Be Your Option

Owner of multiple McDonald's franchises files for bankruptcy

Those who own businesses in Oklahoma are often forced to make difficult financial decisions in order to increase their chances of success. Even a well-researched decision can result in complications due to unforeseen circumstances such as government regulations or an unexpected increase in competition. A company in another state is likely all too familiar with this possibility after the multiple McDonald's franchises it owns failed to make the projected amount of profit. To cope with the debt, Brown Customer Delight Group Inc., also known as BCDG, filed for bankruptcy protection.

BCDG ultimately owned three McDonald's locations for approximately 10 years, but made the decision to sell them in order to purchase 10 in another state. However, it found that the stores were not as profitable as anticipated. Court papers indicated that the stores struggled due to competition from other chains as well as other McDonald's locations.

Additionally, as part of the agreement for the purchase of the new locations, the company had to renovate them. Unfortunately,  the businesses did not make projected profits, forcing BCDG to borrow additional money to cover the costs of renovations. Court filings indicate that the company has approximately $15.6 million in liabilities and $6.7 million in assets.

Those who own businesses in Oklahoma invest a great deal of time and money into ensuring the success of their companies. Unfortunately, there are often obstacles that they are simply unable to overcome, creating debt and other financial concerns. In some cases, filing for bankruptcy may be the best option to help overcome such debt.

Source: nrn.com, "McDonald's franchisee files for bankruptcy", Jonathan Maze, Nov. 22, 2016

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