Claimants, who were customers of the debtor and who had purchased memberships in the franchisor of the debtor, filed proofs of claim seeking refunds of their membership fees after the debtor closed the local showroom.  The chapter 7 trustee objected.  The court considered three issues: (i) whether there was a material breach of contract so as to give the claimant a claim as defined by the Bankruptcy Code; (ii) even if there was a material breach leading to a claim, whether the claimed amount is the quantum of the claimants’ damage; and (iii) whether the claims were entitled to priority.  The court found that there was no material breach when the local showroom was closed, because there were other locations and the opportunity to shop on the Internet and there was no evidence to support a right to payment in the form of a refund of the membership fee.  The court thus disallowed the claims.