Ex-Franchisee Seeks Relief For Taco Del Mar ‘Disaster’

‎Wall Street Journal:

Come Tax Day, U.S. taxpayers and taco fans can line up at 150-plus Taco Del Mar fast-food restaurants to request a free taco. It’s safe to say that former Taco Del Mar franchisee Suzanne Todd won’t be among them.

Todd opened a Taco Del Mar franchise in Frostburg, Md., several years ago, an experience she says quickly devolved into the “disaster” that has now prompted her to bring her ordeal to a federal bankruptcy court.

The operator of the fast-food Mexican restaurant chain, Taco Del Mar Franchising Corp., sought Chapter 11 protection in January, blaming the several years of financial losses it experienced on poor expense management, lawsuit expenses and its selection of “poor franchisees and poor sites” for its new restaurants. The filing halted all creditor actions against the company, including the arbitration proceeding between Todd and the chain that Todd is now seeking court permission to continue with. Todd is trying to protect her $500,000 claim, which she said Taco Del Mar disputes. Read full post.

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