The new CEO of Burger King agreed to pay its debts to its franchisee organization. The company had halted payments last year when the two sides were feuding.
In another sign that Burger King is trying to mend fences with its franchisees, the company has agreed to honor the $1.7 million debt owed to the National Franchisee Association.
Joe Anghelone, chairman of the National Franchisee Association, told franchisees gathered this week at the company’s annual convention that Burger King had recently paid the group $400,000. Anghelone said Burger King’s new chief executive, John Chidsey, pledged to honor the pay the remainder of the $1.3 million to the association, which represents about 90 percent of Burger King’s U.S. franchisees.
”Right now they’re current on their payment, and that’s a great sign,” Anghelone told The Miami Herald at the convention.
The money is part of a three-year deal made in Oct. 2004 to compensate the association for lost profits after Burger King took over the running of the convention.
But last September, Burger King severed relations with the leaders of its U.S. franchisee association and said it was discontinuing the payments. The Miami fast-food chain’s executives said at the time that the $1 million per year would be diverted to the company’s advertising fund.
At the time, the two sides had been feuding for months over everything from restaurant hours to marketing plans and pricing strategies.
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