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April 28, 2005

Battling with the King

Burgerkingman
Here's the deal on what is going on at the five Rochester Burger Kings and the ones on Kasson, Winona and Apple Valley. It seems the franchisee Girish Dharod of Road Corp. is in a standoff with Burger King who has terminated his franchise contract and blocked some of his supplies.

Here's some of what I wrote on this for today's paper:

If you think fighting city hall is tough, try going up against a king — in this case, Burger King.

A dispute between Road Corp., the Rochester-based company that owns and runs the five Burger King restaurants in Rochester along with those in Kasson, Winona and Apple Valley, and the fast-food giant’s corporate office has been heating up for a while.

Now Burger King has pulled Road Corp.’s franchise contract and cut the restaurants off from BK supplies. That means hamburgers, fries and sodas come in generic cups and wrappers at the restaurants. The grills are still hot, and the Burger King signs and menus are still up, and Whoppers are still being served, however.

“We’re not closing,” says Girish Dharod, Road Corp.’s owner. “This is my business as far as I’m concerned.”

Burger King has a different view.

“It is our position that they had no right to operate any BK restaurants after Dec. 31, 2004,” said Joe Gerbino, manager of external communications for Burger King in Miami, Fla.

The dispute is over Dharod’s plans to sell the eight restaurants he owns. He said the corporation wants to control who he sells them to, and he wants more options. He expects the restaurants to remain as Burger Kings, no matter what buyer takes over.

Corporate executives declined to discuss details, but it did confirm the situation. “The franchise agreement was terminated,” Gerbino said.


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Well, I must say that business franchise is gaining popularity again. There are loads of benefits when you start a business with a franchise. I should know for I'm also into it at http://www.automatedbusiness.org

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