A franchisee operating five locations of a rapidly growing pizza chain has filed for Chapter 11 bankruptcy protection, underscoring the financial pressures many restaurant operators continue to face despite strong brand-level growth.
Rogue Fare LLC, a longtime franchisee of Mountain Mike’s Pizza, filed for Chapter 11 bankruptcy on July 1 in the U.S. Bankruptcy Court for the District of Oregon. The Medford, Oregon-based franchisee operates five restaurants across southern Oregon, including two in Medford and additional locations in Klamath Falls, Grants Pass, and Roseburg.
Millions in liabilities
According to court filings, Rogue Fare reported less than $50,000 in assets while listing between $1 million and $10 million in liabilities. Its largest creditors include First Bank of the Lake, which is owed more than $2.9 million, and First Internet Bank of Indiana, which is owed more than $1.5 million. The bankruptcy petition did not specify the reason for the filing.
Despite the bankruptcy, Mountain Mike’s emphasized that the filing involves only one franchise operator and does not reflect the health of the overall brand. The company said the affected restaurant remains open and continues serving customers during the restructuring process.
Brand continues to grow
The filing comes at a time when Mountain Mike’s Pizza is experiencing nationwide expansion. The California-based chain now operates more than 300 restaurants and plans to open approximately 25 additional locations this year as it expands into new markets.
The contrast highlights a growing divide within the restaurant industry. While franchisors may continue expanding their footprints, individual franchisees often face rising labor costs, inflation, higher borrowing expenses, and softer consumer spending. Those challenges have contributed to financial strain across the restaurant sector, even as brands pursue aggressive development plans.
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