Denny's Franchisee M15 Inc. Closes Five Locations Ahead of Chapter 7 Bankruptcy Filing
M15 Inc., a franchisee operating five Denny’s restaurants in Minnesota and Wisconsin, has permanently closed all locations as it prepares to file for Chapter 7 bankruptcy liquidation. The company cited unsustainable debt from business loans that drained its cash reserves, making it impossible to cover payroll or continue operations responsibly. In a note to employees dated September 2, M15 stated that lender collection activities significantly reduced available revenue and warned of potential shortfalls in final pay obligations. Denny’s Inc., the franchisor, is working with franchisees to explore options for reopening some locations but has acknowledged this will take time without guarantees. The closures are part of a broader trend among financially distressed restaurant operators who have defaulted on merchant cash advances or business loans and filed bankruptcy protection in 2026. Merchant cash advances—commonly used by small businesses—are high-interest financing tools that can lead to financial strain due to their short repayment terms and daily/weekly payment schedules.
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