Federal Court Rules in Burger King's Favor in Hawkins Case

<b></b>
2 min read
Opinions expressed by Entrepreneur contributors are their own.

Miami-Judge Marianne Battani of the U.S. District Court for the Eastern District of Michigan entered a summary judgment today dismissing all claims made by LaVan Hawkins and his operating companies against Burger King Corp., thereby paving the way for the company to pursue an injunction that would demand Hawkins relinquish control of his restaurants. Burger King had been attempting to reach a settlement with Hawkins for more than 18 months and began seeking relief through the courts in April of this year.

"We are pleased by the court's ruling. It's well-reasoned and applies the law correctly," said Barry Blum, chief legal counsel for Burger King. "This ruling will allow us to now focus our attention on an orderly transition of Mr. Hawkins' 22 restaurants in Chicago, Detroit, Atlanta and Maryland. It is our hope that we can come to terms with Mr. Hawkins to transfer ownership as quickly as possible, thereby assuring the employees, suppliers and customers that these restaurants will remain open."

In his lawsuit filed against Burger King in April, Hawkins charged the fast-food company with defamation of character, fraud and interference with his ability to conduct business, saying the company reneged on a promise to provide him with 225 restaurants in urban areas within five years. Burger King later filed a lawsuit against Hawkins alleging that he didn't pay his $6.5 million debt to the corporation for royalty payments on his franchise restaurants.

"This ruling means Burger King has to sit down and negotiate a deal with me for the restaurants," Hawkins said. "This ruling does not have anything to do with the commitment that was made to me or to the black community." -PRNewswire, Detroit Free Press

More from Entrepreneur
Our Franchise Advisors are here to help you throughout the entire process of building your franchise organization!
  1. Schedule a FREE one-on-one session with a Franchise Advisor
  2. Choose one of our programs that matches your needs, budget, and timeline
  3. Launch your new franchise organization

Book Sale - Save 60%!


Through 6/20/21, save on our collection of recommended side hustle and Start Your Own books, including:

  • Start Your Own eBay Business
  • Start Your Own Business
  • Start Your Own Etsy Business
  • And more

Use code SIDEHUSTLE2021 to claim your savings!

Try a risk-free trial of Entrepreneur’s BIZ PLANNING PLUS powered by LivePlan for 60 days:
  • Get step-by-step guidance for writing your plan
  • Gain inspiration from 500+ sample plans
  • Utilize business and legal templates
  • And much more

Latest on Entrepreneur