News

Major franchise fee withheld from Yum! International

January 10, 2011

Priszm Income Fund, owner of several Canadian KFC, Taco Bell and Pizza Hut locations, has withheld a $2 million franchise fee to Yum! Restaurants International while it restructures.

According to Canadian Business, Priszm also recently withheld a $975,000 interest payment, claiming it is not in a position to repay a $65.6 million senior debt facility, which was due in December.

The company is currently in talks with Yum! and its senior debt lender about refinancing and restructuring.

Priszm is currently trying to sell its 232 units throughout Ontario and British Columbia for a little more than $46 million.

Yum! has extended Priszm’s contributing fee deadline until Jan. 15.