(WKBN) – Local Perkins franchises are losing the right to use the chain’s name.
The future of several local Perkins restaurants is in jeopardy, all because of a disagreement between the company that owns Perkins and a regional company that operates the local restaurants.
A judge in federal court will decide the future for 27 Perkins restaurants, including several here in the Valley. A hearing is scheduled Tuesday in Memphis, Tennessee.
The company that owns the Perkins brand has taken 5171 Campbells Land Company, a franchisee based near Pittsburgh, to court.
Campbells Land Company owns several Perkins in Ohio and Pennsylvania, including locations in Boardman, Warren, Austintown, Grove City and Hermitage.
In court documents, the Perkins corporation says Campbells was not paying royalties to use the chain’s name.
Perkins claims upgrades to the restaurants were not being done.
It also says the local restaurants used unapproved products.
Last month, the company terminated the agreement with Campbells, meaning all the locations they own would need to drop the Perkins name and close.
It also means they couldn’t reopen under a different name within three miles of those stores for at least two years.
In a statement released Monday, Perkins said Campbells Land Company repeatedly failed to live up to the franchise agreement. Now Perkins wants the locations to close.
5171 Campbells Land Company has been in default since April 2018 failing to pay agreed upon royalty fees, marketing contributions and transfer fees as well as failure to complete construction on multiple pending projects and uphold the standards set forth in the license agreements. Despite innumerable attempts to resolve the situation with the franchisee, and Campbells Land Company’s repeated failure to comply, Perkins & Marie Callender’s was compelled to terminate their license agreement in early June 2019 and is now asking for the court’s assistance in closing the 26 restaurants located in Pennsylvania (15), Ohio (10) and New York (1).“
No one at any of the restaurants wanted to talk to us.
The owner of Campbells Land Company, William Kane, didn’t return our calls.