Burger King to Bolster "Financially Challenged" Franchisees
Miami-Burdened by a deadly combination of rapid growthand falling sales, an unprecedented number of Burger Kingfranchisees are struggling financially. Four of the fast-foodchain's five largest franchisees have faced difficulties andmore than a dozen franchisees, predominately small operators, havefiled 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 indefault on loans, behind in royalty payments, trying to restructuredebt or in bankruptcy court. To fix the problem, Burger King ishelping in ways it has never done before, ranging frommultimillion-dollar loans to negotiating with franchisees'lenders. -Richmond Times-Dispatch