Pioneer Franchisees OK Rent, Fees Agreement

Franchisees voted last week to approve an agreement under which they will begin paying rent, advertising fees and some royalties to Pioneer Chicken Co., the Canoga Park operator of the fried chicken chain.

The fast-food franchiser filed for bankruptcy protection on Jan. 24, in part because the franchisees had stopped making payments, protesting what they said was a badly conceived advertising campaign by Pioneer, among other things. The agreement to resume payments will last for 10 weeks, while the franchisees and Pioneer discuss plans for the chain’s future, including proposals for a group of franchisees to buy the company.

About 75 of the chain’s 150 franchisees attended the March 18 meeting; all but three of them approved the measure, said Rod Jarboe, the chairman of a committee representing franchisees in Pioneer’s bankruptcy case.