Editing Burger King (section)

==Franchises==
{{Main|Burger King franchises}}
[[File:Leicester Square Burger King.jpg|right |thumb |Burger King restaurant in [[Leicester Square]], London, England|alt=A Burger King in London, England]]
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.<ref name="Jakle"/>{{rp|117}}<ref name="Reiter"/>{{rp|64}} These [[franchising|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.<ref name="Jakle"/>{{rp|118}}<ref name="Reiter"/>{{rp|64}}

During 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,<ref name="Reiter"/>{{rp|64}} 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 the 1970s, all of which were spurned by Pillsbury.<ref name="Gale" /> After the failed attempts to acquire the company, the relationship between Chart House and Burger King soured and eventually devolved into a lawsuit.<ref name="Gale" /> 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.<ref name="trotters">{{cite news|url=http://findarticles.com/p/articles/mi_m3190/is_v19/ai_3930610/ |archive-url=https://archive.today/20120708084445/http://findarticles.com/p/articles/mi_m3190/is_v19/ai_3930610/ |url-status=dead |archive-date=July 8, 2012 |title=How Pillsbury 'stole' DiversiFoods for just $390&nbsp;million |first=Rick |last=Telberg |work=Nation's Restaurant News |date=September 9, 1985 |access-date=August 24, 2007 }}</ref><ref>{{cite news |url=https://www.nytimes.com/1984/12/12/business/diversifoods-net.html |archive-url=https://web.archive.org/web/20071030031352/http://query.nytimes.com/gst/fullpage.html?res=9A02EFDA1238F931A25751C1A962948260 |archive-date=October 30, 2007 |title=DiversiFoods Net |work=The New York Times |date=December 12, 1984 |access-date=August 24, 2007}}</ref>

As part of 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 the size of franchisees and prevented larger franchises from challenging Burger King Corporation as Chart House had.<ref name="Reiter"/>{{rp|64}} 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.<ref name="Gale" /> By 1988, parent company [[Pillsbury Company|Pillsbury]] had relaxed many of Smith's changes, scaling back on construction of new locations, which resulted in stalled growth of the brand.<ref name="nyt-franchises"/> Neglect of Burger King by new owner [[Grand Metropolitan]] and its successor [[Diageo]]<ref name="Reese"/> further hurt the standing of the brand, causing significant financial damage to BK franchises and straining relations between the parties.<ref name="Berman-Forbes">{{cite web |url=https://www.forbes.com/2003/04/15/cz_pb_0415burger.html |title=Burger King's Flame-Broiled Future |first=Phyllis |last=Berman |work=Forbes |date=April 15, 2003 |access-date=April 6, 2006 |archive-date=April 8, 2005 |archive-url=https://web.archive.org/web/20050408083702/http://www.forbes.com/2003/04/15/cz_pb_0415burger.html |url-status=live }}</ref>

[[File:Burger King Oaxaca Mexico.jpg|left |thumb |A Burger King franchise adapted to operate in the [[World Heritage Site|historic district]] of [[Oaxaca de Juarez|Oaxaca]], Mexico|alt=A Burger King in Oaxaca, Mexico]]

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 the lack of growth was the nearly 400-store AmeriKing Inc., one of the largest Burger King franchisees.<ref>{{cite web |url=https://www.wsj.com/articles/SB1039042295330836353 |title=Large Burger King Franchisee Files for Bankruptcy Protection |date=December 5, 2002 |access-date=June 9, 2018 |work=[[The Wall Street Journal]] |archive-date=June 12, 2018 |archive-url=https://web.archive.org/web/20180612142834/https://www.wsj.com/articles/SB1039042295330836353 |url-status=live }}</ref> By 2002, the franchise owner, which until this point had been struggling under a nearly US$300&nbsp;million debt load and been shedding stores across the US, was forced to enter [[Chapter 11, Title 11, United States Code|Chapter 11]] bankruptcy.<ref name="nyt-ameriking">{{cite news |url=https://www.nytimes.com/2002/12/22/business/private-sector-a-fighter-for-burgers-and-fries.html?pagewanted=all |title=A Fighter for Burgers and Fries |first=Jo |last=Napolitano |work=The New York Times |date=December 22, 2002 |access-date=April 6, 2008 |archive-date=April 30, 2018 |archive-url=https://web.archive.org/web/20180430033912/https://www.nytimes.com/2002/12/22/business/private-sector-a-fighter-for-burgers-and-fries.html?pagewanted=all |url-status=live }}</ref> The failure of AmeriKing deeply affected the value of Burger King, and put negotiations between Diageo and the TPC Capital-led group on hold. The developments eventually forced Diageo to lower the total selling price of the chain by almost {{nowrap|$750&nbsp;million}}.<ref name="Berman-Forbes"/> 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.<ref name="krt1">{{cite news|url=http://www.accessmylibrary.com/coms2/summary_0286-5925260_ITM |title=Burger King bolstering its many weak franchisees. |first=Elaine |last=Walker |publisher=[[Knight-Ridder]] |date=January 3, 2002 |access-date=April 6, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20120121235540/http://www.accessmylibrary.com/coms2/summary_0286-5925260_ITM |archive-date=January 21, 2012 }}</ref> Partnering with California-based Trinity Capital, LLC, 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.<ref name="bison-bkcffri">{{cite press release |url=http://www.bison.com/press_burgerking_02032003 |archive-url=https://web.archive.org/web/20080222175831/http://www.bison.com/press_burgerking_02032003 |archive-date=February 22, 2008 |title=Burger King Launches Franchisee Financial Restructuring Initiative |publisher=Burger King Corporation on Bison.com |date=February 3, 2003 |access-date=April 6, 2008}}</ref>

Individual franchisees took advantage of 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 {{nowrap|$16&nbsp;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 the largest minority franchisee of Burger King, and Heartland one of the company's top franchises.<ref>{{cite news |url=http://findarticles.com/p/articles/mi_m3190/is_50_37/ai_111507745/ |archive-url=https://web.archive.org/web/20040902131714/http://findarticles.com/p/articles/mi_m3190/is_50_37/ai_111507745/ |archive-date=September 2, 2004 |title=BK franchisee-led group buys 131 AmeriKing units |work=Nations Restaurant News |date=December 15, 2003 |access-date=April 12, 2008}}</ref> By 2006, the company was valued at over {{nowrap|$150&nbsp;million}}, and was sold to New York–based [[GSO Capital Partners]].<ref>{{cite web|url=http://franchise.business-opportunities.biz/2006/12/29/major-burger-king-franchisee-to-sell-240-restaurants/ |title=Major Burger King Franchisee To Sell 240 Restaurants |work=The Miami Herald |date=December 17, 2006 |access-date=April 12, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20081007091645/http://franchise.business-opportunities.biz/2006/12/29/major-burger-king-franchisee-to-sell-240-restaurants/ |archive-date=October 7, 2008 }}</ref> Other purchasers included a three-way group of [[National Football League|NFL]] athletes [[Kevin Faulk]], [[Marcus Allen]], and [[Michael Strahan]] who collectively purchased 17 stores in the cities of [[Norfolk, Virginia|Norfolk]] and [[Richmond, Virginia]];<ref>{{cite news |url=http://archive.boston.com/business/globe/articles/2007/08/17/faulk_joins_other_black_athletes_to_buy_burger_king_franchises/ |title=Faulk joins other black athletes to buy Burger King franchises |first=Keith |last=Reed |work=The Boston Globe |date=August 17, 2007 |access-date=April 12, 2008 |archive-date=April 24, 2016 |archive-url=https://web.archive.org/web/20160424050504/http://archive.boston.com/business/globe/articles/2007/08/17/faulk_joins_other_black_athletes_to_buy_burger_king_franchises/ |url-status=live }}</ref> and [[Cincinnati]]-based franchisee Dave Devoy, who purchased 32 AmeriKing stores. After investing in new decor, equipment and staff retraining, many of the formerly failing stores showed growth approaching 20 percent.<ref name="Reese"/>

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.<ref name=CNN-Divesture>{{cite web|last=Taylor|first=Kate|title=Burger King's Franchising Efforts Pay Off Big in 3Q|url=http://www.entrepreneur.com/article/229664|work=Entrepreneur Magazine|publisher=Burger King's Franchising Efforts Pay Off Big in 3Q|access-date=October 30, 2013|date=October 29, 2013|archive-date=October 31, 2013|archive-url=https://web.archive.org/web/20131031233012/http://www.entrepreneur.com/article/229664|url-status=live}}</ref><ref name=NRN-Divestiture>{{cite web|last=Dostal|first=Erin|title=Burger King sells 94 Canadian restaurants|url=http://nrn.com/latest-headlines/burger-king-sells-94-canadian-restaurants|work=Nation's Restaurant News|access-date=October 30, 2013|date=April 23, 2013|archive-date=November 7, 2013|archive-url=https://web.archive.org/web/20131107053236/http://nrn.com/latest-headlines/burger-king-sells-94-canadian-restaurants|url-status=live}}</ref><ref name=Yahoo-Divesture>{{cite web|title=Burger King Divests German Stake|url=https://finance.yahoo.com/news/burger-king-divests-german-stake-183002971.html|work=Yahoo! Finance|publisher=Zaks|access-date=October 30, 2013|date=May 6, 2013|archive-date=November 3, 2013|archive-url=https://web.archive.org/web/20131103060644/http://finance.yahoo.com/news/burger-king-divests-german-stake-183002971.html|url-status=live}}</ref> The move gave the company a Q3, 2013 profit of US$68.2 million over the same quarter, 2012 of US$6.6 million.<ref name=CNN-Divesture/>

At the end of its 2013 fiscal year, Burger King was the second largest [[chain store|chain]] of hamburger fast food restaurants in terms of global locations,<ref name="2015 10-K"/>{{rp|123}} 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 (restaurant)|Subway]].<ref>{{cite web |url=https://www.qsrmagazine.com/reports/qsr50-2015-top-50-chart |title=The QSR 50 |work=QSR magazine |access-date=June 9, 2018 |date=2015 |archive-date=June 12, 2018 |archive-url=https://web.archive.org/web/20180612140738/https://www.qsrmagazine.com/reports/qsr50-2015-top-50-chart |url-status=live |author1=Tory }}</ref> Burger King now has over 12,000 stores worldwide.<ref>{{cite web |url=https://www.foodandwine.com/slideshows/worlds-largest-fast-food-chains |title=World's Largest Fast Food Chains |access-date=June 9, 2018 |work=[[Food & Wine]] |archive-date=November 24, 2017 |archive-url=https://web.archive.org/web/20171124003102/http://www.foodandwine.com/slideshows/worlds-largest-fast-food-chains |url-status=live }}</ref>

In January 2024, Restaurant Brands International, 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.<ref>{{Cite web |date=January 16, 2024 |title=Burger King parent company acquires Carrols Restaurant Group |url=https://www.nrn.com/news/burger-king-parent-company-acquires-carrols-restaurant-group |access-date=January 16, 2024 |website=Nation's Restaurant News |language=en}}</ref><ref>{{Cite news |title= Burger King Owner to Acquire Franchisee Carrols for $1 Billion|url=https://www.bloomberg.com/news/articles/2024-01-16/burger-king-owner-to-acquire-franchisee-carrols-for-1-billion |access-date=January 16, 2024 |newspaper=Bloomberg|date=January 16, 2024 }}</ref><ref>{{Cite web |last=Moriarty |first=Rick |date=January 16, 2024 |title=Burger King to buy Syracuse's Carrols Restaurant Group, its biggest U.S. franchisee, for $1 billion |url=https://www.syracuse.com/news/2024/01/burger-king-to-buy-syracuses-carrols-restaurant-group-its-biggest-us-franchisee-for-1-billion.html |access-date=January 16, 2024 |website=syracuse |language=en}}</ref>