Under the deal, RBI, which also owns
Burger King plans to invest around
They will later refranchise the Burger King locations to smaller franchisee groups "at a market price," said RBI chief executive
"This will allow us to really focus our attention on accelerating remodels and being thoughtful about how to refranchise this restaurant network into smaller packages with new and existing franchisees, who live close to the communities where they own the restaurants," he said.
The transaction is part of Burger King's ongoing Reclaim the Flame plan, which aims to accelerate sales growth and drive franchisee profitability. The plan emerged after Burger King made a
"We are willing to do what it takes to set this brand, system and its franchisees up for the long term," RBI executive chairman
"Last year, that included helping some large franchisees to exit the system, knowing it required tough conversations and would result in some ugly headlines."
Carrols, which is Syracuse-based, already has about 400 Burger King locations that feature a modern design,
Of the restaurants that will get a revamp, he said, "Some need a little bit less work and some need a little bit more work."
The deal must meet closing conditions, including getting shareholder approval and passing a waiting period under
RBI said it expects the transaction to be complete in the second quarter of 2024.
Even after it refranchises some of its revamped restaurants, Burger King will keep a couple hundred restaurants under corporate ownership for strategic innovation, training and operator development purposes.
This report by The Canadian Press was first published
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