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A large Pizza Hut franchisee declared bankruptcy Monday weeks after the franchisor filed a lawsuit accusing the operator of financial mismanagement. EYM Pizza has 126 locations across Illinois, Wisconsin, South Carolina, and Georgia. It recently shuttered its Indiana market, which had 15 stores.

In June, Pizza Hut filed a lawsuit against EYM over multiple breaches of contract and financial mismanagement. According to court documents, From 2019 to 2023, while Pizza Hut’s same-store sales rose by 7 percent, EYM’s sales fell by 10 percent, indicating a significant operational decline. Additionally, EYM’s restaurants failed quality assessments at a much higher rate than other Pizza Hut franchises.