Franchise Agreement Of Burger King
Although most restoration sites are privately owned by individual owners and their financial dependence on these owners exists, the relationship between Burger King and its franchises has not always been harmonious. Occasional disagreements between the two have caused many problems and, in several cases, the relationships between the company and its licensees have become previous court proceedings.  When 3G Capital Burger King was purchased in January 2011, the company moved to settle all disputes with its franchises. In April, Burger King and the franchises agreed on a non-monetary comparison in which the franchise was allowed to redesign the Buck Double to 1.29 $US and gave them more power in the future to determine the composition of the Burger King menu. The parent company also appointed a Chicago, Illinois franchisee, Dan Wiborg, as the new North American president, which contributed to franchise relations because of his former position within the NFA.   Many franchises have refused extensions for several reasons;  Operators stated that the safety of employees and customers was threatened by longer working hours, as several Miami franchises noticed incidents that killed employees or customers during longer working hours in 2006 and 2007.  In addition, it was argued that longer working hours were not cost-effective due to increased site operating costs at times when customer traffic was lower and revenue was subsequently reduced. Franchises and the NFA found that the franchise agreement only provided that the sites should be open until 11:00 p.m. and did not contain drivers authorizing the company`s parent company to amend the agreement.   In response to the changes, three Miami franchises filed a complaint with the Eleventh Judicial Circuit Court of Florida in Miami in July 2008 to stop the change and force the company to make it optional instead of imposing it.  The NFA stated that it had “clearly supported” the complaint and that “…
the franchisor does not have the enforceable right to impose extended hours of work.  Financial support: If the franchisor owns or leases the land or land and construction of the restaurant, it may lease or sublet the site to the franchisee. The franchisor may also, from time to time, provide financing for other types of transactions. With the sale of Burger King to 3G Capital of Brazil in 2010, Burger King decided to sell almost all of its subsidiaries to its franchises by the end of 2013.   An important step toward this goal was the sale of more than 275 branches to the Carrols Corporation of New York and nearly 100 minority branches owned by Magic Burger of Florida.  The first indication of franchisees” dissatisfaction with this issue dates back to 2005 and concerned allegations by a Manhattan-based franchise that the company had ignored local market conditions in setting prices.  E-Z Eating Corp., manager of five restaurants in New York City and owned by sister Elizabeth and Luan Sadik, had problems after the September 11, 2001 terrorist attacks, but had been in a company-sponsored turn-around program when Burger King launched its new value program in 2006.   The program required all sites to perform a certain rate of product at a reduced price, with limited exceptions for some sites meeting a number of criteria.