Schlotzsky's Franchisee Files for Chapter 11
JPrieto Hospitality LLC, which operated 10 North Texas Schlotzsky's locations, sought bankruptcy protection on November 5, 2026.
Updated on Nov. 6, 2026 in Dining Out
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JPrieto Hospitality LLC, a San Antonio-based Schlotzsky's franchisee, filed for Chapter 11 bankruptcy protection on November 5, 2026, in the U.S. Bankruptcy Court for the Western District of Texas. The company listed over $532,000 in assets and $350,000 in liabilities.
Why it matters
The filing reflects a sharp revenue decline at the franchisee after two years of roughly $8 million in annual sales, affecting restaurant operations across Texas. Texas diners who frequent Schlotzsky's locations in the state may see changes to the franchise's local footprint as the case proceeds.
The Chapter 11 petition lists $532,000 in assets and $350,000 in liabilities, with annual revenue of $8.26 million in 2024 and $8.19 million in 2025, falling to $4.11 million in 2026 through November 5. It is unclear from the filing alone how the company will restructure its debts or whether additional locations will close.
The players
JPrieto Hospitality LLC
A San Antonio, Texas-based Schlotzsky's franchisee that operated 10 North Texas locations and filed for Chapter 11 bankruptcy protection.
Schlotzsky's
A fast-casual sandwich chain founded in Austin, Texas, in 1971 that now operates about 280 restaurants in 25 states.
GoToFoods
The franchise company to which JPrieto Hospitality LLC owes more than $148,000.
The details
The petition lists five current Texas leases and lease terminations in Weatherford, Hudson, and Granbury, Texas, and JPrieto owes GoToFoods more than $148,000. Schlotzsky's, founded in Austin in 1971, operates about 280 restaurants in 25 states.
Timeline
2024: JPrieto annual revenue reached $8.26 million.
2025: JPrieto annual revenue declined to $8.19 million.
March 31, 2026: JPrieto operated 10 Schlotzsky's locations in North Texas.
November 5, 2026: JPrieto filed its Chapter 11 bankruptcy petition.
Franchise Trend
The petition was filed in the U.S. Bankruptcy Court for the Western District of Texas, the same court that handles Chapter 11 cases for Texas restaurant operators. JPrieto's revenue fell from $8.26 million in 2024 to $4.11 million in 2026 through November 5, a decline the extraction does not attribute to any single cause.
Texas diners who eat at Schlotzsky's locations in Weatherford, Hudson, Granbury, or Fort Worth may need to check whether those restaurants remain open during the bankruptcy process. The extraction does not confirm which locations will continue operating.
The takeaway
Franchise restaurant operators can face sharp revenue declines that leave little room to absorb debt, and diners may want to confirm a location's status before visiting. Bankruptcy filings can change operating hours or close restaurants without much notice.
Further reading
For related coverage of restaurant openings and closures across the state, see Dining Out.
Source note: This article includes information reported by The Tribune.
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