Burger Bowl is an athletic field on the West Campus of the Georgia Institute of Technology , at the intersection of Hemphill Avenue and Ferst Drive. It is located behind the Fitten, Freeman, and Montag dorms. The bowl itself is split in two by a sidewalk creating the larger Burger Bowl, adjacent to the SAC fields, and the smaller Taco Bowl, adjacent to Hemphill Avenue.
125-422: The Burger Bowl was known for its characteristic lack of grass, the prevailing contents of the soil being a mixture of dirt, rocks, and urban debris. The elevated lips that give the green space its bowl shape lead to flooding in the field, with puddles from heavy rains sometimes leaving the field in a marshy state. In 2010, the bowl was renovated and leveled, and new sod was laid down. The bowl-shaped field picked up
250-448: A franchise disclosure document (FDD), no laws require an estimate of franchisee profitability, which depends on how intensively the franchisee "works" the franchise. Therefore, franchisor fees are typically based on "gross revenue from sales" and not on profits realized. See remuneration . Various tangibles and intangibles such as national or international advertising , training and other support services are commonly made available by
375-514: A "drug cooperative". As he explained to them, they could increase profits by paying less for their purchases, especially if they set up their own manufacturing company. His idea was to market private label products. About 40 druggists pooled $ 4,000 of their own money and adopted the name Rexall . Sales soared, and Rexall became a franchisor. The chain's success set a pattern for other franchisors to follow. Although many business owners did affiliate with cooperative ventures of one type or another, there
500-626: A corporate restructuring of the chain, first renaming the company Burger King. They ran the company as an independent entity for eight years (eventually expanding to over 250 locations in the United States), before selling it to the Pillsbury Company in 1967. Pillsbury's management tried several times to restructure Burger King during the late 1970s and the early 1980s. The most prominent change came in 1978 when Burger King hired McDonald's executive Donald N. Smith to help revamp
625-438: A customer who had a bad experience at one franchise may assume that they will have the same experience at other locations with other services. Distance can make it difficult for firms to detect whether or not the franchises are of poor quality. One way around this disadvantage is to set up extra subsidiaries in each country or state in which the firm expands. This creates a smaller number of franchisees to oversee, which will reduce
750-696: A damaging fiscal slump for Burger King and Pillsbury. Poor operation and ineffectual leadership continued to bog down the company for many years. Pillsbury was eventually acquired by the British entertainment conglomerate Grand Metropolitan in 1989. Initially, Grand Met attempted to bring the chain to profitability under newly minted CEO Barry Gibbons; the changes he initiated during his two-year tenure had mixed results, as successful new product introductions and tie-ins with The Walt Disney Company were offset by continuing image problems and ineffectual advertising programs. Additionally, Gibbons sold off several of
875-416: A fair price from the franchisor or sources recommended by the franchisor. A coffee brew, for example, can be readily identified by the trademark if its raw materials come from a particular supplier. If the franchisor requires purchase from her stores, it may come under anti-trust legislation or equivalent laws of other countries. So, too, with purchases such as the uniforms of personnel and signs, as well as
1000-756: A federal lawsuit. As a result, the larger Burger King chain was ordered not to build any franchises within a 20-mile radius of the Mattoon Burger King. An existing trademark held by a shop of the same name in South Australia forced the company to change its name in Australia to "Hungry Jack's", while another state trademark in Texas forced the company to abandon its signature product, the Whopper, in several counties around San Antonio. The company
1125-399: A foreign market on its own, as the franchisee is typically responsible for those costs and risks, putting the onus on them to build a profitable operation as quickly as possible. Through franchising, a firm has the potential of building a global presence quickly and also at a low cost and risk. For the franchisee, the primary advantages are access to a well-known brand, support in setting up
1250-520: A former master franchisee of the country's largest franchise system led to a review of the need for franchise law by the Ministry of Economic Development. The New Zealand Government decided there was no case for franchise-specific legislation at that time. This decision was criticised by the opposition, which had initiated the review when in power, and the review process was questioned by a leading academic. The Franchise Association originally supported
1375-443: A franchise agreement. The word franchise is of Anglo-French derivation—from franc , meaning 'free'—and is used both as a noun and as a (transitive) verb. For the franchisor, use of a franchise system is an alternative business growth strategy, compared to expansion through corporate owned outlets or " chain stores ". Adopting a franchise system business growth strategy for the sale and distribution of goods and services minimizes
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#17327727418681500-603: A franchisee which is given the designation of master franchise for the territory. The master franchise will then be expected to sub-license new stores, provide training support, and ensure operational standards are maintained. In exchange for the oversight responsibilities, the master franchise will receive administrative and advertising support from Burger King Corporation to ensure a common marketing scheme. The 3G Capital ownership group announced in April 2011 that it would begin divesting itself of many corporate owned locations with
1625-450: A franchisor: (a) a royalty for the trademark, (b) reimbursement for the training and advisory services given to the franchisee, and (c) a percentage of the individual business unit's sales. These three fees may be combined in a single 'management' fee. A fee for "disclosure" is separate and is always a "front-end fee". A franchise usually lasts for a fixed time period (broken down into shorter periods, which each require renewal), and serves
1750-453: A geopolitical dispute involving Muslim and Jewish groups on multiple continents over the application of, and adherence to, international law . The case eventually elicited reactions from the members of the 22-nation Arab League . The Islamic countries within the League made a joint threat to the company of legal sanctions including the revocation of Burger King's business licenses within
1875-462: A great extent. Consequently, franchising was not a growth industry in the United States. It was not until the 1960s and 1970s that people began to take a close look at the attractiveness of franchising. The concept intrigued people with entrepreneurial spirit. However, there were serious pitfalls for investors, which almost ended the practice before it became truly popular. The United States
2000-556: A local master franchisee. However, the International Consortium of Investigative Journalism revealed that Burger King retained its stake in the Russian franchises through an offshore joint venture with the Russian state-owned VTB Bank and a Ukrainian investment firm linked to corrupt deals with Ukraine's former pro-Russian leader. In October 2023, Tom Curtis, president of Burger King U.S. & Canada, announced
2125-431: A new 150,000 square feet (14,000 m ) five-story headquarters building to be built at 5707 Blue Lagoon Drive, just down the street from its existing nine-story headquarters at 5505 Blue Lagoon Drive. This was slightly smaller than the 200,000 square feet (19,000 m ) it was leasing in its current headquarters building at the time. In 2018, Burger King moved into its new headquarters at 5707 Blue Lagoon Drive after it
2250-547: A new store design at its annual franchisee convention in Canada, branded "The Sizzle". The company planned to remodel existing Burger King locations with a new look inside and outside, to tackle slowing business after the 2020 coronavirus pandemic . The overhaul plan included more kiosks, dedicated pickup areas for mobile app orders, food-ordering platforms like Doordash , Uber Eats , and Grubhub , and an improved drive-thru service. In 2023, Burger King remodeled several locations in
2375-402: A percentage of the money they collected and turned the rest over. The practice ended around 1562 but spread to other endeavors. For example, in 17th-century England franchisees were granted the right to sponsor markets and fairs or operate ferries . There was little growth in franchising, though, until the mid-19th century, when it appeared in the United States for the first time. One of
2500-617: A restaurant in Madrid . Beginning in 1982, BK and its franchisees began operating stores in several East Asian countries, including Japan, Taiwan , Singapore and South Korea . Due to high competition, all of the Japanese locations were closed in 2001; however, BK reentered the Japanese market in June 2007. BK's Central and South American operations began in Mexico in the late 1970s and by
2625-570: A restructuring of the company to reverse its fortunes. 3G, along with its partner Berkshire Hathaway , eventually merged the company with the Canadian-based doughnut chain Tim Hortons under the auspices of a new Canadian-based parent company named Restaurant Brands International . Burger King's menu has expanded from a basic offering of burgers, french fries, sodas, and milkshakes to a larger and more diverse set of products. In 1957,
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#17327727418682750-693: A revamped menu strategy, a series of programs designed to revamp individual stores, a new restaurant concept called the BK Whopper Bar , and a new design format called 20/20 . These changes successfully re-energized the company, leading to a score of profitable quarters. Yet, despite the successes of the new owners, the effects of the Great Recession weakened the company's financial outlooks while those of its immediate competitor, McDonald's, grew. The falling value of Burger King eventually led to TPG and its partners divesting their interest in
2875-494: A sales revenue of approximately $ 66.5 billion. In 2016 the majority of franchise brands were retailers with the largest segment being non-food retailing, accounting for 26 percent of brands, a further 19 percent of brands were involved in food retailing, 15 percent of franchisors operated in administration and support services, 10 percent in other services, 7 percent in education and training and 7 percent in rental, hire and real estate services. Franchising in Australia commenced in
3000-412: A significant way in the early 1970s under the influence of the franchised US fast food systems such as KFC , Pizza Hut , and McDonald's . It was however underway prior to this and a decade earlier in 1960 Leslie Joseph Hooker , considered a pioneer of franchising, created Australia's first national real estate agency network of Hooker real estate agencies. In Australia, franchising is regulated by
3125-554: A small franchisee. Thirty-six countries have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect effect on franchising. Franchising is also used as a foreign market entry mode . The boom in franchising did not take place until after World War II . Nevertheless, the rudiments of modern franchising date back to the Middle Ages when landowners made franchise-like agreements with tax collectors , who retained
3250-413: A specific territory or geographical area surrounding its location. One franchisee may manage several such locations. Agreements typically last from five to thirty years, with premature cancellations or terminations of most contracts bearing serious consequences for franchisees. A franchise is merely a temporary business investment involving renting or leasing an opportunity, not the purchase of a business for
3375-507: A substantial portion of its revenue was dependent on franchise fees. During the transitional period after 3G Capital acquired the company, Burger King's board of directors was co-chaired by John W. Chidsey, formerly CEO and chairman of the company, and Alex Behring , managing partner of 3G Capital. By April 2011, the new ownership had completed the restructuring of Burger King's corporate management and Chidsey tendered his resignation, leaving Behring as CEO and chair. Burger King Corporation
3500-469: A support organization for the families and friends of cancer patients. When the predecessor of Burger King first opened in Jacksonville in 1953, its menu consisted predominantly of basic hamburgers, French fries, soft drinks, milkshakes, and desserts. After being acquired by its Miami, Florida, franchisees and renamed to its current moniker in 1954, BK began expanding the breadth of its menu by adding
3625-548: A takeaway food shop in Adelaide . As a result, Burger King provided the Australian franchisee, Jack Cowin , with a list of possible alternative names derived from pre-existing trademarks already registered by Burger King and its then corporate parent Pillsbury, that could be used to name the Australian restaurants. Cowin selected the "Hungry Jack" brand name, one of Pillsbury's US pancake mixture products, and slightly changed
3750-878: A winning prize that is usually a food or beverage product, but includes (rarer) items such as shopping sprees or trips. In the Northeast , BK has affiliated itself with the Major League Baseball team the Boston Red Sox and its charitable foundation, the Jimmy Fund . The group runs the contest in Boston. In the New York City area, it operates the contest in association with the Burger King Children's Charities of Metro New York and
3875-636: Is a leader in franchising, a position it has held since the 1930s when it used the approach for fast-food restaurants, food inns and, slightly later, motels at the time of the Great Depression . As of 2005, there were 909,253 established franchised businesses, generating $ 880.9 billion of output and accounting for 8.1 percent of all private, non-farm jobs. This amounts to 11 million jobs, and 4.4 percent of all private sector output. Mid-sized franchises like restaurants, gasoline stations and trucking stations involve substantial investment and require all
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4000-417: Is also a powerful corporate entity controlling a highly lucrative location and/or captive market (for example, a large sports stadium) in which prospective franchisors must then compete to exclude one another from. However, under specific circumstances like transparency, favourable legal conditions, financial means and proper market research, franchising can be a vehicle of success for both a large franchisor and
4125-437: Is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchisor licenses some or all of its know-how, procedures, intellectual property , use of its business model , brand, and rights to sell its branded products and services to a franchisee. In return, the franchisee pays certain fees and agrees to comply with certain obligations, typically set out in
4250-602: Is currently an independently operated subsidiary of RBI . RBI's present organizational structure includes five primary segments: Tim Hortons , Burger King, Firehouse Subs , Popeyes Louisiana Kitchen and International. International encompasses the aggregated outcomes from the operations of each brand outside the United States and Canada. Josh Kobza, the CEO of RBI, was appointed in 2023. Before taking over as CEO in February 2023, Kobza served as CFO, CTO, and COO of RBI. Tom Curtis,
4375-437: Is entered into. The code also regulates the content of franchise agreements, for example in relation to marketing funds, a cooling-off period , termination, and the resolution of disputes by mediation . On 1 January 2015, the old Franchising Code was repealed and replaced with a new Franchising Code of Conduct. The new Code applies to conduct on or after 1 January 2015. The new Code: These are significant changes and it
4500-616: Is important that franchisors, franchisees and potential franchises understand their rights and responsibilities under the Code. For further information about the changes to the Code, please see the updated Franchisor Compliance Manual and the Franchisee Manual. The Code explanatory materials are available from the ComLaw website (link is external). New Zealand is served by around 423 franchise systems operating 450 brands, giving it
4625-437: Is necessary to operate complicated equipment, and the franchisee has to learn on their own from instruction manuals. The training period must be adequate, but in low-cost franchises it may be considered expensive. Many franchisors have set up corporate universities to train staff online. This is in addition to providing literature, sales documents and email access. Also, franchise agreements carry no guarantees or warranties and
4750-518: Is the master franchise and thus is now responsible for oversight of the operations that country with Burger King only providing administrative and advertising support to ensure a common marketing scheme for the company and its products. Over a 10-year period starting in 2008, Burger King predicted 80 percent of its market share would be driven by foreign expansion, particularly in the Asia-Pacific and Indian subcontinent regional markets. While
4875-587: Is the McLamore Foundation, also a non-profit, 501(c)(3) corporation that provides scholarships to students in the U.S. and its territories. In various regions across the United States, Burger King and its franchises have aligned themselves with several charitable organizations that support research and treatment of juvenile cancer. Each year, these coalitions hold a fund raising drive called "A Chance for Kids", in which Burger King restaurants sell lottery -style scratch cards for $ 1. Each card produces
5000-672: Is the only franchise to operate under a different name due to a trademark dispute with a similarly named restaurant in Adelaide , South Australia , and a series of legal cases between the two. The predecessor to Burger King was founded in 1953 in Jacksonville, Florida , as Insta-Burger King. After visiting the McDonald brothers' original store location in San Bernardino, California , the founders and owners (Keith G. Cramer and his wife's uncle Matthew Burns), who had purchased
5125-491: The 2022 Russian invasion of Ukraine , many companies, including Burger King, faced growing pressure to halt operations in Russia. In March 2022, Burger King claimed to have suspended all its corporate support, including operations, marketing, supply chain, investments and expansion in Russia in response to the invasion of Ukraine, including support to the more than 800 fully franchised restaurant chains in Russia managed by
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5250-556: The BSE and NSE in India. The IPO was subscribed over 150 times. The stock opened at ₹112.5 per share on December 14, nearly double the IPO price of ₹60 , and closed at ₹135 . Burger King has been involved in several legal disputes and cases, as both plaintiff and defendant, in the years since its founding in 1954. Depending on the ownership and executive staff at the time of these incidents,
5375-532: The Cutler census-designated place . In August 2014, the future of the company's Miami headquarters was again in doubt as reports surfaced that Burger King was in talks about buying the Canadian restaurant chain Tim Hortons . The merger between Burger King and Tim Hortons created the fast food company now known as Restaurant Brands International Inc. In 2016, Burger King signed a build-to-suit lease agreement on
5500-938: The New York Yankees . Funds raised in these areas go to support the Dana–Farber Cancer Institute , located in Boston. In Nebraska, the company is affiliated with the Liz's Legacy Cancer Fund "BK Beat Cancer for Kids" program at the UNMC Eppley Cancer Center at the University of Nebraska Medical Center in Omaha . In the Pittsburgh region, it funded the establishment of the Burger King Cancer Caring Center,
5625-600: The continental United States in 1963 with a store in San Juan, Puerto Rico , it did not have an international presence until several years later. Shortly after the acquisition of the chain by Pillsbury, it opened its first Canadian restaurant in Windsor, Ontario in 1969. Other international locations followed soon after, including Australia in 1971, with a restaurant in the Perth suburb of Innaloo , and Europe in 1975, with
5750-417: The " Whopper " became the first major addition to the menu, and it has since become Burger King's signature product. Conversely, Burger King has introduced many products that have failed to catch hold in the market. Some of these failures in the United States have seen success in foreign markets, where Burger King has also tailored its menu for regional tastes. From 2002 to 2010, Burger King aggressively targeted
5875-641: The "Burger" name during the 1970s, when Burger King opened a restaurant across Hemphill Avenue from the field. The Burger King, which closed in the mid-1980s, was next to the site of former Georgia Governor Lester Maddox 's Pickrick Cafeteria . The Burger Bowl was used as a practice area for field events for the 1996 Summer Olympics . Following the Olympics, the Atlanta Commission for the Olympic Games (ACOG) had 6 inches of sand placed over
6000-413: The "territory" if the franchise is worked according to plan. The franchisee must be seen as an independent merchant. It must be protected by the franchisor from any trademark infringement by third parties. A franchise attorney is required to assist the franchisee during negotiations. Often the training period – the costs of which are in great part covered by the initial fee – is too short in cases where it
6125-471: The 18–34 male demographic with larger products that often carried correspondingly large amounts of unhealthy fats and trans-fats . This tactic would eventually damage the company's financial underpinnings and cast a negative pall on its earnings. Beginning in 2011, the company began to move away from its previous male-oriented menu and introduce new menu items, product reformulations, and packaging, as part of its current owner 3G Capital's restructuring plans of
6250-432: The 1970s, all of which were spurned by Pillsbury. After the failed attempts to acquire the company, the relationship between Chart House and Burger King soured and eventually devolved into a lawsuit. Chart House eventually spun off its Burger King operations in the early 1980s into a holding company called DiversiFoods which, in turn, was acquired by Pillsbury in 1984 and absorbed into Burger King's operations. As part of
6375-486: The 1970s, structural deficiencies in Burger King's franchise system became increasingly problematic for Pillsbury. A major example was the relationship between Burger King and Louisiana-based franchisee Chart House, Burger King's largest franchisee group at the time with over 350 locations in the United States. The company's owners, William and James Trotter, made several moves to take over or acquire Burger King during
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#17327727418686500-598: The AmeriKing failure; one of BK's regional owners, Miami-based Al Cabrera, purchased 130 stores located primarily in the Chicago and the upper mid-west region, from the failed company for a price of $ 16 million , approximately 88 percent of their original value. The new company, which started out as Core Value Partners and eventually became Heartland Foods , also purchased 120 additional stores from distressed owners and revamped them. The resulting purchases made Cabrera
6625-524: The Asian subcontinent and all Oceanic territories. The LAC region includes Mexico, Central and South America and the Caribbean Islands and has no centralized operations group. Australia is the only country in which Burger King does not operate under its own name. When the company set about establishing operations down under in 1971, it found that its business name was already trademarked by
6750-528: The Burger King headquarters with the remainder moving in phases in August 2002. Prior to the moving to its current headquarters in 2002, Burger King had considered moving away from the Miami area to Texas; Miami-Dade County politicians and leaders lobbied against this, and Burger King stayed. Before 2002, the company's previous headquarters was located in a southern Dade County campus located on Old Cutler Boulevard in
6875-435: The Canadian restaurant and coffee shop chain Tim Hortons and merge it with Burger King with backing from Warren Buffett 's Berkshire Hathaway . The two chains retained separate operations post-merger, with Burger King remaining in its Miami headquarters. A Tim Hortons representative stated that the proposed merger would allow Tim Hortons to leverage Burger King's resources for international growth. The combined company became
7000-594: The Caribbean (LAC). In each of these regions, Burger King has established several subsidiaries to develop strategic partnerships and alliances to expand into new territories. In its EMEA group, Burger King's Switzerland-based subsidiary Burger King Europe GmbH is responsible for the licensing and development of BK franchises in those regions. In APAC region, the Singapore-based BK AsiaPac, Pte. Ltd. business unit handles franchising for East Asia,
7125-686: The English language for the document, as long as the Brazilian party knows English fluently and expressly acknowledges that fact, to avoid translation. The registration accomplishes three things: In Canada, recent legislation has mandated better disclosure and fair treatment of franchisees. The regulations also ensure their right to form associations and launch collective action, even if they signed contracts prohibiting such moves. Franchising in Canada involves 1,300 brands, 80,000 franchise units accounting for about 20% of all consumer spending . China has
7250-550: The Franchising Code of Conduct, a mandatory code of conduct concluded under the Trade Practices Act 1974 . The ACCC regulates the Franchising Code of Conduct, which is a mandatory industry code that applies to the parties to a franchise agreement. This code requires franchisors to produce a disclosure document which must be given to a prospective franchisee at least 14 days before the franchise agreement
7375-523: The Indian market has the company at a competitive disadvantage with other fast food restaurants such as KFC because of the aversion of the country's large Hindu majority to beef. BK hopes to use their non-beef products, such as their TenderCrisp and TenderGrill chicken sandwiches, as well as other products like mutton sandwiches and veggie sandwiches, to help them overcome this hurdle to expand in that country. 3G has reported that it will continue with
7500-679: The Leadership Challenge Course in the northeast corner. Burger King Burger King Corporation ( BK , stylized in all caps ) is an American multinational chain of hamburger fast food restaurants . Headquartered in Miami-Dade County, Florida , the company was founded in 1953 as Insta-Burger King , a Jacksonville, Florida –based restaurant chain. After Insta-Burger King ran into financial difficulties, its two Miami-based franchisees David Edgerton (1927–2018) and James McLamore (1926–1996) purchased
7625-461: The Singer venture did not put an end to franchising. Other companies attempted franchising in one form or another after the Singer experience. For example, several decades later, General Motors established a somewhat successful franchising operation in order to raise capital. Perhaps the father of modern franchising, though, is Louis K. Liggett . In 1902, Liggett invited a group of druggists to join
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#17327727418687750-497: The TPC Capital-led group on hold. The developments eventually forced Diageo to lower the total selling price of the chain by almost $ 750 million . After the sale, newly appointed CEO Brad Blum initiated a program to help roughly 20 percent of its franchises, including its four largest, who were in financial distress, bankruptcy or had ceased operations altogether. Partnering with California-based Trinity Capital, LLC,
7875-585: The TPG-led group continued BK's international expansion by announcing plans to open new franchise locations in Eastern Europe, Africa and the Middle East, and Brazil, the company plan is focusing on the three largest markets – India, China, and Japan. The company plans to add over 250 stores in these Asian territories, as well as other places such as Macau , by the end of 2012. Its expansion into
8000-573: The United States with the "Sizzle" concept. While the remodel plan was an overhaul to the entire restaurant, Burger King was also investing in a "Refresh" initiative in order to replace equipment and upgrade technologies. By the end of 2023, Burger King completed 264 remodels and exited the year with 46% of its restaurants with a modern image. Burger King Holdings was the parent company of Burger King when it went public in 2002. Burger King derived its income from several sources, including property rental and sales through company owned restaurants; however,
8125-419: The United States. The Singer Company implemented a franchising plan in the 1850s to distribute its sewing machines. The operation failed, though, because the company did not earn much money even though the machines sold well. The dealers, who had exclusive rights to their territories, absorbed most of the profits because of deep discounts. Some failed to push Singer products, so competitors were able to outsell
8250-464: The Whopper sandwich in 1957. This quarter-pound (4 oz (110 g)) hamburger was created by Burger King's new owners James McLamore and David Edgerton as a way to differentiate BK from other burger outlets at the time. Since its inception, the Whopper has become synonymous with Burger King and has become the focus of much of its advertising. The company even named its new kiosk-style restaurants Whopper Bars . Franchising Franchising
8375-508: The Whopper to "look about 35% bigger in its advertising than it is in reality". Burger King has two in-house national charitable organizations and programs. One is the Have It Your Way Foundation, a U.S.-based non-profit ( 501(c)(3) ) corporation with multiple focuses on hunger alleviation, disease prevention and community education through scholarship programs at colleges in the U.S. The other charitable organization
8500-587: The agreement, which leads to refunds and serious payments for damages. The Franchise Law does not distinguish between Brazilian and foreign franchisors. The National Institute of Industrial Property (INPI) is the registering authority. Indispensable documents are a Statement of Delivery (of disclosure documentation) and a Certification of Recording (INPI). The latter is necessary for payments. All sums may not be convertible into foreign currency. Certification may also mean compliance with Brazil's antitrust legislation. Parties to international franchising may decide to adopt
8625-459: The attention of a businessperson. There are also large franchises like hotels, spas and hospitals, which are discussed further under technological alliances . "No poaching" agreements are prevalent within franchises, thus limiting the ability of employers at one franchise establishment to hire employees at an affiliated franchise. Economists have characterized these agreements as a contributor to oligopsony . Three important payments are made to
8750-417: The brand. Neglect of Burger King by new owner Grand Metropolitan and its successor Diageo further hurt the standing of the brand, causing significant financial damage to BK franchises and straining relations between the parties. By 2001 and after nearly 18 years of stagnant growth, the state of its franchises was beginning to affect the value of the company. One of the franchises most heavily affected by
8875-470: The business using operating manuals, and ongoing operational support including access to suppliers and employee training. A primary disadvantage to franchising is quality control, as the franchisor wants the firm's brand name to convey a message to consumers about the quality and consistency of the firm's product. They want the consumer to experience the same quality regardless of location or franchise status. This can prove to be an issue with franchising, as
9000-429: The cases, the situations raised legal questions, dealt with legal compliance, or resulted in legal remedies such as changes in contractual procedure or binding agreements between parties. The resolutions to these legal matters have often altered the way the company interacts and negotiates contracts with its suppliers and franchisees, or how it does business with the public. Further controversies have occurred during
9125-485: The chain in a US$ 3.26 billion sale to 3G Capital of Brazil. Analysts from financial firms UBS and Stifel Nicolaus agreed that 3G would have to invest heavily in the company to help reverse its fortunes. After the deal was completed, the company's stock was removed from the New York Stock Exchange, ending a four-year period as a public company. The delisting of its stock was designed to help
9250-521: The communities they serve. On April 9, 2019, Nations Restaurant News reported that Burger King filed a lawsuit on Fritz Management LLC to remove Burger King trademarks from 37 units in South Texas after unsanitary conditions were found at a restaurant in Harlingen, Texas . In May 2019, the lawsuit was settled with the franchisee, Fritz Management (a subsidiary of Sun Holdings Inc), keeping
9375-552: The company a Q3, 2013 profit of US$ 68.2 million over the same quarter, 2012 of US$ 6.6 million. At the end of its 2013 fiscal year, Burger King was the second largest chain of hamburger fast food restaurants in terms of global locations, behind industry bellwether McDonald's, which had 32,400 locations. At the end of 2014, Burger King ranked fourth among US food chains in terms of US sales, behind McDonald's , Starbucks , and Subway . Burger King now has over 12,000 stores worldwide. In January 2024, Restaurant Brands International,
9500-531: The company established the Franchisee Financial Restructuring Initiative, a program to address the financial issues facing BK's financially distressed franchisees. The initiative was designed to assist franchisees in restructuring their businesses to meet financial obligations, focus on restaurant operational excellence, reinvest in their operations, and return to profitability. Individual franchisees took advantage of
9625-463: The company in 1959 and renamed it "Burger King". Over the next half-century, the company changed hands four times and its third set of owners, a partnership between TPG Capital , Bain Capital , and Goldman Sachs Capital Partners , took it public in 2002. In late 2010, 3G Capital of Brazil acquired a majority stake in the company in a deal valued at US$ 3.26 billion. The new owners promptly initiated
9750-523: The company licenses its franchisees varies depending on the region, with some regional franchises, known as master franchises , responsible for selling franchise sub-licenses on the company's behalf. Burger King's relationship with its franchises has not always been harmonious. Occasional spats between the two have caused numerous issues, and in several instances, the relations between the company and its licensees have degenerated into precedent-setting court cases. Burger King's Australian franchise Hungry Jack's
9875-494: The company repair its fundamental business structures and continue working to close the gap with McDonald's without having to worry about pleasing shareholders. In the United States domestic market , the chain fell to third place in terms of same store sales behind Ohio-based Wendy's . The decline was the result of 11 consecutive quarters of same store sales decline. In August 2014, 3G announced that it planned to acquire
10000-442: The company return to independence when it was purchased from Diageo by a group of investment firms led by TPG Capital for US$ 1.5 billion in 2002. The new owners rapidly moved to revitalize and reorganize the company, culminating with the company being taken public in 2006 with a highly successful initial public offering . The firms' strategy for turning the chain around included a new advertising agency and new ad campaigns,
10125-473: The company's assets in an attempt to profit from their sale and laid off many of its staff members. Burger King's headquarters experienced major damage in 1992 from Hurricane Andrew . After Gibbon's departure, a series of CEOs each tried to repair the company's brand by changing the menu, bringing in new ad agencies and many other changes. The parental disregard of the Burger King brand continued with Grand Metropolitan's merger with Guinness in 1997 when
10250-649: The company's expansion in the Middle East. The opening of a Burger King location in Ma'aleh Adumim , an Israeli settlement in the Israeli-occupied Palestinian territories , led to a breach of contract dispute between Burger King and its Israeli franchise due to the hotly contested international dispute over the legality of Israeli settlements in the Palestinian territories in accordance to international law. The controversy eventually erupted into
10375-517: The company's responses to these challenges have ranged from a conciliatory dialog with its critics and litigants, to a more aggressive opposition with questionable tactics and negative consequences. The company's response to these various issues has drawn praise as well as, in some instances, suggestions of political appeasement. A trademark dispute involving the owners of an unrelated restaurant also named Burger King in Mattoon, Illinois , led to
10500-402: The company. As of December 31, 2018, Burger King reported that it had 17,796 outlets in 100 countries. Of these, nearly half are located in the United States, and 99.7% are privately owned and operated , with its new owners moving to an almost entirely franchised model in 2013. Burger King has historically used several variations of franchising to expand its operations. The manner in which
10625-414: The company. In a plan called "Operation Phoenix", Smith restructured corporate business practices at all levels of the company. Changes included updated franchise agreements, a broader menu and new standardized restaurant designs. Smith left Burger King for PepsiCo in 1980 shortly before a system-wide decline in sales. Pillsbury's Executive Vice President of Restaurant Operations Norman E. Brinker
10750-464: The company. Under the existing contract, Singer could neither withdraw rights granted to franchisees nor send in its own salaried representatives. So, the company started repurchasing the rights it had sold. The experiment proved to be a failure. That may have been one of the first times a franchisor failed, but it was by no means the last. Colonel Harland Sanders did not initially succeed in his early efforts at franchising Kentucky Fried Chicken . Still,
10875-561: The early 1980s in Caracas , Venezuela, Santiago , Chile, and Buenos Aires , Argentina. While Burger King lags behind McDonald's in international locations by over 12,000 stores, as of 2008 it had managed to become the largest chain in several countries including Mexico and Spain. The company divides its international operations into three segments; the Middle East, Europe and Africa division (EMEA), Asia-Pacific (APAC) and Latin America and
11000-512: The entire marketplace. Controversies and disputes have arisen with groups such as People for the Ethical Treatment of Animals (PETA), governmental and social agencies, and unions and trade groups over various topics. These situations have touched on legal and moral concepts such as animal rights , corporate responsibility , ethics , and social justice . While the majority of the disputes did not result in lawsuits, in many of
11125-570: The field, and grass sowed in it. This slightly improved drainage of the field, but did nothing to improve grass cover, given the wear and tear it faced as a rugby practice field. The field is used as a recreational field for a variety of intramural athletics and is home to the Georgia Tech Rugby Football Club (a rugby union team). The Bowl also serves as a meeting place for clubs and events, including most Georgia Tech Homecoming and Greek Week events. Georgia Tech built
11250-412: The first successful American franchising operations was started by an enterprising druggist named John S. Pemberton . In 1886, he concocted a beverage comprising sugar , molasses , spices , and cocaine . Pemberton licensed selected people to bottle and sell the drink, which was an early version of what is now known as Coca-Cola . His was one of the earliest—and most successful—franchising operations in
11375-490: The formerly failing stores showed growth approaching 20 percent. As part of 3G's restructuring plan, the company decided to divest itself of its corporate owned locations by re-franchising them to private owners and become a 100% franchised operation by the end of 2013. The project, which began in April 2012, saw the company divest corporate-owned locations in Florida, Canada, Spain, Germany, and other regions. The move gave
11500-414: The franchise as a system in which the franchisor licenses the franchisee, for a payment, the right to use a trademark or patent along with the right to distribute products or services on an exclusive or semi-exclusive basis. The provision of a "Franchise Offer Circular", or disclosure document, is mandatory before execution of agreement and is valid for all of the Brazilian territory. Failure to disclose voids
11625-416: The franchise sites, if they are owned or controlled by the franchisor. The franchisee must carefully negotiate the license and must develop a marketing or business plan with the franchisor. The fees must be fully disclosed and there should not be any hidden fees. The start-up costs and working capital must be known before the license is granted. There must be assurance that additional licensees will not crowd
11750-443: The franchisee has little or no recourse to legal intervention in the event of a dispute. Franchise contracts tend to be unilateral and favor of the franchisor, who is generally protected from lawsuits from their franchisees because of the non-negotiable contracts that franchisees are required to acknowledge, in effect, that they are buying the franchise knowing that there is risk, and that they have not been promised success or profits by
11875-416: The franchising authority are becoming increasingly strict. Some franchisors are using minor rule violations to terminate contracts and seize the franchise without any reimbursement. Franchising brings with it several advantages and disadvantages for firms looking to expand into new areas and foreign markets. The primary advantage is that the firm does not have to bear the development cost and risks of opening
12000-571: The franchising reorganization segment of Operation Phoenix, Donald N. Smith initiated a restructuring of future franchising agreements in 1978. Under this new franchise agreement, new owners were disallowed from living more than one hour from their restaurants – restricting them to smaller individuals or ownership groups and preventing large, multi-state corporations from owning franchises. Franchisees were also now prohibited from operating other chains, preventing them from diverting funds away from their Burger King holdings. This new policy effectively limited
12125-415: The franchisor's capital investment and liability risk. Franchising is rarely an equal partnership, especially in the typical arrangement where the franchisee is an individual, unincorporated partnership or small privately held corporation, as this will ensure the franchisor has substantial legal and/or economic advantages over the franchisee. The usual exception to this rule is when the prospective franchisee
12250-443: The franchisor's signs, logos and trademark in a prominent place. The uniforms worn by the staff of the franchisee have to be of a particular design and color. The service has to be in accordance with the pattern followed by the franchisor in the successful franchise operations. Thus, franchisees are not in full control of the business, as they would be in retailing. A service can be successful if equipment and supplies are purchased at
12375-521: The franchisor. Franchise brokers help franchisors find appropriate franchisees. There are also main 'master franchisors' who obtain the rights to sub-franchise in a territory. According to the International Franchise Association approximately 44% of all businesses in the United States are franchisee-worked. Franchising is one of the few means available to access venture capital without the need to give up control of
12500-416: The franchisor. Contracts are renewable at the sole option of the franchisor. Most franchisors require franchisees to sign agreements that mandate where and under what law any dispute would be litigated. In 2016 there were an estimated 1,120 franchise brands operating in Australia and an estimated 79,000 units operating in business format franchises, with a total brand turnover of approximately $ 146 billion and
12625-478: The highest proportion of franchises per capita in the world. Despite (or because of) the 2008–2009 recession, the total number of franchised units increased by 5.3% from 2009 to 2010. There is no separate law covering franchises, so they are covered by normal commercial law. This functions very well in New Zealand and includes law as it applies to contracts, restrictive trade practices, intellectual property, and
12750-550: The intent to increase the number of privately held restaurants to 95%. In 2016, the percentage of privately owned Burger King establishments grew to 99.5%. RBI maintains that approximately 100% of Burger King franchises are privately held restaurants. Burger King was formerly headquartered in a nine-story office tower by the Miami International Airport in unincorporated Miami-Dade County, Florida. On Monday July 8, 2002, 130 employees began working at
12875-463: The lack of growth was the nearly 400-store AmeriKing Inc., one of the largest Burger King franchisees. By 2002, the franchise owner, which until this point had been struggling under a nearly US$ 300 million debt load and been shedding stores across the US, was forced to enter Chapter 11 bankruptcy. The failure of AmeriKing deeply affected the value of Burger King, and put negotiations between Diageo and
13000-625: The largest minority franchisee of Burger King, and Heartland one of the company's top franchises. By 2006, the company was valued at over $ 150 million , and was sold to New York–based GSO Capital Partners . Other purchasers included a three-way group of NFL athletes Kevin Faulk , Marcus Allen , and Michael Strahan who collectively purchased 17 stores in the cities of Norfolk and Richmond, Virginia ; and Cincinnati -based franchisee Dave Devoy, who purchased 32 AmeriKing stores. After investing in new decor, equipment and staff retraining, many of
13125-499: The law of misleading or deceptive conduct. The Franchise Association of New Zealand introduced a self-regulatory code of practice for its members in 1996. This contains many provisions similar to those of the Australian Franchising Code of Practice legislation, although only around a third of all franchises are members of the association and therefore bound by the code. A case of fraud in 2007 perpetrated by
13250-590: The member states' territories. A related issue involving members of the Islamic faith over the interpretation of the Muslim version of canon law , Shariah , regarding the promotional artwork on a dessert package in the United Kingdom raised issues of cultural sensitivity, and, with the former example, posed a larger question about what companies must do to ensure the smooth operation of their businesses in
13375-465: The most franchises in the world but the scale of their operations is relatively small. The average franchise system in China has about 45 outlets, compared to more than 540 in the United States. Together, there are 2600 brands in some 200,000 retail markets . KFC was the most significant foreign entry in 1987 and is widespread. Many franchises are in fact joint-ventures, as at their forming the franchise law
13500-449: The name to a possessive form by adding an apostrophe "s" forming the new name Hungry Jack's. After the expiration of the trademark in the late 1990s, Burger King unsuccessfully tried to introduce the brand to the continent. After losing a lawsuit filed against it by Hungry Jack's ownership, the company ceded the territory to its franchisee. Hungry Jack's is now the only Burger King brand in Australia; Cowin's company Hungry Jack's Pty Ltd.
13625-514: The operation of the chain and build a distribution system for servicing it. After the brand and formula are carefully designed and properly executed, franchisors are able to sell franchises and expand rapidly across countries and continents using the capital and resources of their franchisees while reducing their own risk. There is also risk for the people buying the franchises. However, failure rates are much lower for franchise businesses than independent business startups. Franchisor rules imposed by
13750-505: The owner of the brand, announced it would purchase the largest franchisee of the chain, Carrols Restaurant Group , for around $ 1 billion. At the time of the announcement, Carrols had 1,022 Burger King locations (along with 60 Popeyes locations). The goal was to remodel 600 of the restaurants, then sell them back to franchisees over five to seven years. The move represented a departure from the existing model of largely franchising locations. While BK began its foray into locations outside of
13875-455: The plans to grow globally, even ramping up the planned expansion to help increase their return on investment. It is expected that 3G Brazilian-based management connections in the region may help Burger King expand in Brazil and Latin America, where it has been having problems finding acceptable franchisees. In December 2020, Burger King India went in for an initial public offering (IPO) on
14000-477: The positive regulation of the franchise sector but its eventual submission to the review was in favour of the status quo of self-regulation. By the end of 2012, about 2,031 franchise brands were operating in Brazil, with approximately 93,000 locations, making it one of the largest countries in the world in terms of number of units. Around 11 percent of this total were foreign-based franchisors. The Brazilian Franchise Law (Law No. 8955 of December 15, 1994) defines
14125-498: The president of Burger King U.S. and Canada, was appointed in 2021 and oversees the operation of the Burger King Corporation in the United States and Canada. In North America, Burger King Corporation is responsible for licensing operators and administering of stores. Internationally, the company often pairs with other parties to operate locations or it will outright sell the operational and administrative rights to
14250-535: The purpose of ownership. It is classified as a wasting asset due to the finite term of the license. Franchise fees are on average 6.7% with an additional average marketing fee of 2%. However, not all franchise opportunities are the same and many franchise organizations are pioneering new models that challenge antiquated structures and redefine success for the organization as well as the franchisee. A franchise can be exclusive, non-exclusive or "sole and exclusive". Although franchisor revenues and profit may be listed in
14375-419: The quality control challenges. Each party to a franchise has several interests to protect. The franchisor is involved in securing protection for the trademark, controlling the business concept and securing know-how . The franchisee is obligated to carry out the services for which the trademark has been made prominent or famous. There is a great deal of standardization required. The place of service has to bear
14500-458: The rights to two pieces of equipment called "Insta-machines", opened their first restaurants. Their production model was based on one of the machines they had acquired, an oven called the "Insta-Broiler". This strategy proved to be so successful that they later required all of their franchises to use the device. After the company faltered in 1959, it was purchased by its Miami, Florida, franchisees, James McLamore and David R. Edgerton. They initiated
14625-562: The size of franchisees and prevented larger franchises from challenging Burger King Corporation as Chart House had. Smith also sought to have BKC be the primary owner of new locations and rent or lease the restaurants to its franchises. This policy would allow the company to take over the operations of failing stores or evict those owners who would not conform to the company guidelines and policies. By 1988, parent company Pillsbury had relaxed many of Smith's changes, scaling back on construction of new locations, which resulted in stalled growth of
14750-403: The third-largest international chain of fast food restaurants. The deal led to a controversy over the practice of tax inversions , in which a company decreases the amount of taxes it pays by moving its headquarters to a tax haven , a country with lower rates, but maintains the majority of their operations in their previous location. As a high-profile instance of tax inversion, news of the merger
14875-399: The trademarks on all 37 units. On November 19, 2019, a lawsuit was filed by a vegan from Atlanta, Georgia against Burger King for allegedly failing to clearly disclose that Impossible Whopper burgers were heated on the same grill as their beef burgers. The lawsuit was dismissed. On March 28, 2022, a lawsuit was filed against Burger King, alleging the fast food chain falsely advertised
15000-426: The two organizations formed the holding company Diageo . Eventually, the ongoing systematic institutional neglect of the brand through a string of owners damaged the company to the point where major franchises were driven out of business, and its total value was significantly decreased. Diageo eventually decided to divest itself of the money-losing chain and put the company up for sale in 2000. The 21st century saw
15125-583: Was criticized by U.S. politicians, who felt that the move would result in a loss of tax revenue to foreign interests, and could result in further government pressure against inversions. In 2019, Burger King reported that it planned to close up to 250 low-volume locations per year, with closures coming into effect in 2020. In February 2021, Burger King began testing a customer loyalty rewards program called "Royal Perks" in Los Angeles, Miami, New York City, New Jersey and Long Island, New York. Following
15250-516: Was finished. As of August 2024, the Burger King system operates more than 18,700 locations in more than 100 countries and U.S. territories. When Burger King Corporation began franchising in 1959, it used a regional model where franchisees purchased the right to open stores within a geographic region. These franchise agreements granted BKC very little oversight control of its franchisees and resulted in issues of product quality control, store image and design, and operational procedures. During
15375-506: Was little growth in franchising until the early 20th century, and in whatever form franchising existed, it looked nothing like what it is today. As the United States shifted from an agricultural to an industrial economy, manufacturers licensed individuals to sell automobiles, trucks, gasoline, beverages, and a variety of other products. The franchisees did little more than selling the products, though. The sharing of responsibility associated with contemporary franchising arrangement did not exist to
15500-457: Was only able to enter northern Alberta , in Canada , in 1995, after it paid the founders of another chain named Burger King . Legal decisions from other suits have set contractual law precedents in regards to long-arm statutes , the limitations of franchise agreements , and ethical business practices. Many of these decisions have helped define general business dealings that continue to shape
15625-839: Was tasked with turning the brand around, and strengthening its position against its main rival McDonald's. One of his initiatives was a new advertising campaign featuring a series of attack ads against its major competitors. This campaign started a competitive period between Burger King, McDonald's, and top burger chains known as the Burger wars . Brinker left Burger King in 1984, to take over Dallas-based gourmet burger chain Chili's . Smith and Brinker's efforts were initially effective, but after their respective departures, Pillsbury relaxed or discarded many of their changes, and scaled back on construction of new locations. These actions stalled corporate growth and sales declined again, eventually resulting in
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