Memphis Franchisee Files for Chapter 11

Global Midsouth Holding Corp., a Checkers and Rally's franchisee based in Memphis, sought bankruptcy protection one day before a foreclosure auction.

Updated on Nov. 3, 2026 in Hospitality

Global Midsouth Holding Corp., a Memphis-based Checkers and Rally's fast-food franchisee, filed for Chapter 11 bankruptcy on Oct. 28, 2026, in the U.S. Bankruptcy Court for the Western District of Tennessee. The filing came one day before a scheduled foreclosure auction on its Jackson, Tenn. restaurant property.

Why it matters

The filing triggered an automatic stay that halts legal actions against the debtor, including the foreclosure sale. Global Midsouth's revenue has declined in recent years, and the company is restructuring debt and rejecting underperforming leases as part of its reorganization.

Global Midsouth listed $1.9 million in assets against $1.3 million in liabilities in its petition, with revenue sliding from $860,000 in 2024 to $800,000 in 2025. Its 2026 revenue through the filing date stood at $582,000, and the reorganization plan has not yet been detailed.

The players

Global Midsouth Holding Corp.

A Memphis-based Checkers and Rally's fast-food franchisee that operates restaurants across several southern states.

Checkers Drive-In Restaurants

A national fast-food chain with roughly 700 locations whose franchisee network includes Global Midsouth.

The details

Global Midsouth operated 16 locations across Alabama, Missouri, Mississippi, and Tennessee as of July 2025. Its listed unsecured creditors were small, including $3,400 owed to the Tennessee Department of Revenue and $2,500 owed to Madison County Waste Disposal.

July 2025: Global Midsouth operated 16 restaurant locations.
Oct. 28, 2026: Global Midsouth filed its Chapter 11 petition.
Oct. 29, 2026: A foreclosure auction at the Madison County Courthouse in Jackson, Tenn. was scheduled.

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Franchise Pressure

Global Midsouth's filing follows a separate bankruptcy by a Tampa, Fla. Checkers franchisee, suggesting financial strain across parts of the chain's franchisee network. Checkers Drive-In Restaurants operates roughly 700 locations, and its franchisees' financial health bears on the brand's regional footprint.

Customers of Global Midsouth's Checkers and Rally's locations in the affected states may see changes if restaurants close or leases are rejected during the reorganization. The automatic stay means the Jackson, Tenn. foreclosure cannot proceed while the case is pending.

The takeaway

Franchise operators with declining revenue can use Chapter 11 to restructure debt and reject underperforming leases while keeping operations running. Readers tracking local restaurants should watch for location closures as the case proceeds.