The Lawsuit That Closed 25 Texas Dairy Queens and a Forced Sale of Assets

(Longview, Texas) - Last week, we learned about an auction that went up showing 25 Dairy Queen locations across Texas selling off various assets inside those stores. Those auctions are now done and the assets will be removed from those stores this week. What we didn't know is why these stores closed.

Well, it turns out, the franchisee wasn't doing what they were suppossed to. Because of that, there is a whole legal mess that has to be sorted through. I've got the details and will put it all together for you as best as I can below.

A Lawsuit Forced 25 Texas Dairy Queen Stores to Close and Sale Their Assets

According to WFAA, a lawsuit was filed in Dallas County between American Dairy Queen Corporation and the franchisee Project Lonestar. The suit claims that Project Lonestar didn't remodel their stores and would be forced to sell.

Project Lonestar claims that they found a buyer for the franchise but that Dairy Queen didn't follow the required steps to go through with the sale. It's alot more complicated than that but you get the gist of what's being argued.

Of These 25 Closed Locations, Six Were in East Texas

There were 25 total locations across all parts of Texas that were forced to be closed. Six of those locations were in East Texas:

• 4101 Gilmer Road, Longview
• 580 N. Interstate 20 E., Waskom
• 1001 E Sabine Street, Carthage
• 175 N. Dickinson Drive, Rusk
• 3121 N. Street, Nacogdoches
• 202 N. Temple Drive, Diboll

Through last week's auction, various pieces of kitchen equipment were sold. Those pieces will be picked up by the buyer by this Friday, February 28. That includes removing the Dairy Queen sign from the building by the buyer.

READ MORE: Assets From 6 East Texas Dairy Queen Restaurants Up for Auction Now

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