Ex-Franchise Group CEO Fights Plan to Cut Him, Equity From Cash

Franchise Group Inc.'s former CEO, Brian Kahn, is pushing back on the bankrupt brand manager’s plan to use a $13.3 million pot of company cash to fund litigation to benefit creditors.

As the largest equity holders in one of Franchise Group’s bankrupt affiliates, Kahn and his wife, Lauren, said changes in the company’s proposed Chapter 11 plan would give them no recovery and should be rejected, according to an objection they filed Wednesday in the US Bankruptcy Court for the District of Delaware.

Equity holders of Freedom VCM Holdings LLC would do better under a liquidation than under the company’s ...