# KFC Taco Bell Puerto Rico Franchise Files Bankruptcy

> Puerto Rico's KFC and Taco Bell franchise operator files bankruptcy after Yum Brands ends partnership.
- Title: KFC Taco Bell Puerto Rico Franchise Files Bankruptcy
- Summary: Puerto Rico's KFC and Taco Bell franchise operator files bankruptcy after Yum Brands ends partnership.
- Keywords: kfc, taco bell, puerto rico, encanto restaurants, yum brands, chapter 11 bankruptcy, franchisee, bankruptcy filing, Nation's Restaurant News
- Source: Nation's Restaurant News — https://nrn.com/quick-service/kfc-taco-bell-puerto-rico-franchisee-files-bankruptcy
- Read time: 1 min
- Topics: kfc, taco bell, puerto rico, encanto restaurants, yum brands, chapter 11 bankruptcy, franchisee, bankruptcy filing, food, business
## KFC Taco Bell Puerto Rico Franchise Files Bankruptcy
Encanto Restaurants filed for Chapter 11 bankruptcy on November 5, 2026.
## Yum Brands Ends Franchise Relationship
Yum Brands announced it was ending its longstanding relationship with Encanto Restaurants three days prior.
## Bankruptcy Financials
Encanto reported $123.9 million in liabilities against $29.8 million in assets.
## Major Creditors
Banco Popular de Puerto Rico is owed approximately $85 million by Encanto.
## Additional Claims
Encanto has claims of $3 million to Arco Publicidad, $3 million to LUMA Energy, and $2.5 million to Plaza Warehousing & Realty.
## Employee Impact
Approximately 2,700 employees were affected by the closure of Encanto's KFC and Taco Bell restaurants.
## Yum Brands' Response
Yum Brands remains committed to Puerto Rico and seeks a new franchisee to reopen impacted restaurants.
## Franchise History
Encanto operated KFC, Taco Bell, and Pizza Hut in Puerto Rico since 2004.
## Company Scale
Encanto is among Puerto Rico's 10 largest private sector employers with over 3,000 employees and 180 restaurants.
## Key takeaway

Encanto Restaurants filed Chapter 11 bankruptcy on November 5, 2026, following Yum Brands' decision to end its franchise relationship.