Burger King to Bolster "Financially Challenged" Franchisees
Miami-Burdened by a deadly combination of rapid growth and falling sales, an unprecedented number of Burger King franchisees are struggling financially. Four of the fast-food chain's five largest franchisees have faced difficulties and more than a dozen franchisees, predominately small operators, have filed for bankruptcy protection in the past two years.
Burger King estimates that about 20 percent of its U.S. franchise system is "financially challenged," are in default on loans, behind in royalty payments, trying to restructure debt or in bankruptcy court. To fix the problem, Burger King is helping in ways it has never done before, ranging from multimillion-dollar loans to negotiating with franchisees' lenders. -Richmond Times-Dispatch