A Lawsuit That Closed 25 Texas Dairy Queens

(Longview, Texas) - Earlier this year, 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 was why these stores closed.

Well, it turns out, the franchisee wasn't doing what they were supposed to. As a result, there is a complex legal issue that needs to be resolved. 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 Sell 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 its 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 a lot more complicated than that, but you get the gist of what's being argued.

Through the auction, various pieces of kitchen equipment were sold. 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

READ MORE: Whataburger Takes Austin by Surprise with Non-Hamburger Experience Built for Fans