Franchisees hit out at Fatty Arbuckles and its receivers

Franchisees of the US-style diner chain Fatty Arbuckles claim its receivers are refusing to allow them to terminate their contracts with a company they say has become nothing but an "embarrassment" and a "liability".

Fatty Arbuckles went into receivership five weeks ago (Caterer, 13 July, page 5).

Since then, several of the franchisees say they have lost customers.

One, who asked to remain anonymous, said: "There have been closures, there is a vast body of disgruntled ex-employees and there is confusion among our clientele. The name is positively working against me."

It is understood as many as half the 27 franchisees no longer want to have anything to do with the name.

Some want to sell their restaurants while others would like to relaunch their businesses independently.

They claim each time they try to talk to the receivers at Ernst & Young they are ignored.

The receivers are trying to sell back 10 of the Fatty Arbuckles restaurants to a management buyout team headed by the company's former chairman Robert Breare.

Breare is executive chairman of Noble House Leisure. The deal is expected to be completed soon.

A second franchisee said: "The Fatty Arbuckles name has been dragged through the mud and is not worth anything."

Another added: "The sooner I disassociate myself with Fatty Arbuckles the better."

Stephen Harris, a representative for the receivers, declined to comment.

He said: "I am not going to be drawn into this."

Breare said: "I cannot comment on anything between the franchisees and the receivers but if we do complete the deal we will provide a good service for the franchisees. We will invest heavily in revamping the name."

by Louise Bozec louise.bozec@rbi.co.uk

Source: Caterer & Hotelkeeper magazine, 17-23 August 2000