Burger King Corp. And UrbanCityFoods LLC Reach Agreement
Miami-Burger King Corp. and LaVan Hawkins' UrbanCityFoods LLC announced that they've reached an agreement where all litigation and other disputes between the parties will be dismissed or resolved and Hawkins' UrbanCityFoods will sell its 23 restaurants in the Atlanta, Baltimore, Chicago, Detroit, and Washington, DC areas to the corporation. Terms of the agreement were not disclosed. Representatives for both sides said the transactions would be completed on a staggered schedule over the next several weeks, allowing for a smooth transition with minimal disruption at the restaurant level.
"We are extremely pleased to have resolved our differences with Mr. Hawkins and that we have structured an agreement that will allow for an orderly turnover of the restaurants," said Barry Blum, chief legal counsel for Burger King. "It is our hope that none of these restaurants will be closed for more than 72 hours and that as many staff members as possible will remain with the new management."
Blum said Burger King is expected to retain ownership of the five restaurants in Atlanta and plans to re-franchise the remaining restaurants in Baltimore, Chicago, Detroit and Washington, DC to existing franchisees.
"Mr. Hawkins is very pleased with the resolution of the matter and is glad that he and his staff can now concentrate on running their other highly successful businesses," said Willie Gary and Alex L. Parrish, who negotiated the settlement on behalf of Hawkins' UrbanCityFoods. They noted a key aspect of the settlement is that the restaurants will remain open to serve their communities. -PR Newswire
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