Frisch’s Big Boy is facing a wave of evictions across Ohio, Kentucky, and Indiana after failing to pay rent to its landlord, NNN Reit Inc. The publicly traded real estate investment trust has filed eviction lawsuits against more than 20 locations, including a dozen in the Cincinnati, Ohio region.
NNN Reit Inc., based in Orlando, is a 40-year-old firm specializing in income-producing retail, restaurant, office, and apartment properties. The company owns 3,548 sites nationwide, leasing to 375 tenants, including major chains like 7-Eleven, LA Fitness, AMC Theatres, and Dave & Buster’s. It has been listed on the New York Stock Exchange for decades and has a market value of $8.75 billion.
The firm’s name, “NNN,” refers to a triple net lease structure, where tenants are responsible for property taxes, building repairs, insurance, and utilities in addition to rent. This model minimizes financial risk for landlords but can pose challenges for struggling businesses like Frisch’s.
NNN Reit acquired 19 Frisch’s locations in 2015 in a $47 million sale-leaseback deal, allowing the restaurant chain to sell its properties while continuing to operate under long-term leases. The real estate firm currently owns 66 Frisch’s locations according to the website, while the restaurant chain operates or franchises around 88 stores.
The issue arises when lease agreements outpace revenue growth. While NNN Reit benefits from annual rent increases, restaurant earnings don’t always keep up. Frisch’s CEO James Walker acknowledged the financial pressures in July, and now, multiple locations face eviction for unpaid rent.
With eviction proceedings underway, the future of these Frisch’s Big Boy locations remains uncertain. If Frisch’s cannot resolve its lease obligations, closures may follow, impacting employees and customers alike. The restaurant chain has not yet publicly commented on potential resolutions.
As the eviction battle unfolds, Frisch’s Big Boy fans may soon see fewer locations in the region, raising concerns about the iconic brand’s long-term viability.