Case No. 295-01760, Case No. 295-1761United States Bankruptcy Court, M.D. Tennessee
July 15, 1996
For the Debtor, Stephen C. Douglas, Sabine Douglas, P.C., P.O. Box 422, Crossville, TN 38557, (931) 484-5936
For Little Ceasar Enterprises, Inc., William L. Norton, III, Roger Jones, Boult, Cummings, Conners Berry, PLC, 414 Union Street, Nashville, TN 37219, (615) 244-2582
ORDER
Judge Keith M. Lundin
In accordance with the Memorandum filed contemporaneously herewith, the Court finds that in the Marshall case, the Debtor’s proposed disallowance of $1,093.39 of LCE’s $47,300.03 prepetition claim is sustained to the extent of $442.93. LCE, therefore has an allowed prepetition claim of $46,857.10. LCE also lied a proof of claim for $45,611.82 representing lost future LCNAP advertising fees and royalties of this $45,611.82, the Court finds that LCE has an allowed claim in the amount of $14,289.00. This figure represents the $300 monthly minimum royalty payment multiplied by the number of months remaining in the Franchise Agreement (44), and calculated to present dollars by a factor of 8.25%. No future advertising fees are awarded to LCE. LCE has a total allowed claim of $61,146.10 in the Marshall case.
In the Hebblewhite case, no challenge was made by the Debtor at trial to the following amounts: $19,450.85 for postpetition food and supply purchases; $27,439.12 for accrued postpetition royalties; and $39,188.86 in postpetition advertising fees. Hebblewhite did, however, challenge the $688,761.05 for future royalties and advertising fees. The Court finds that LCE is not entitled to any future LCNAP advertising fees. As far as lost future royalties, the Court finds that LCE is entitled to future royalties of $300 per month for the remainder of the Franchise Agreements at a present value discount of 8.25%. Accordingly, LCE has an allowed claim in the amount of $209,463.75 for lost future royalties, and a total claim in the Hebblewhite case of $295,542.58.
It is therefore so ORDERED.
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