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Despite Presence of New Faces, Burger King, Franchisees Appear to Remain Far Apart

Developments regarding Burger King and its franchisee association, the National Franchisee Association (“NFA”), in the past few months have raised as many questions as they have answered. NFA Board Chairman Dan Fitzpatrick and other board members resigned at a meeting in early December, and they were replaced by four veteran Burger King franchisees: Bob Boss, Vernon Duckrey, Ray Meeks, and Gary Robison. Another franchisee, Joe Anghelone, joined the board in January 2006.

The resignations were interpreted by some observers as a gesture aimed toward ending an ugly impasse with the franchisor that became public when the Miami Herald reported last fall that Burger King decided to withdraw its $1 million per year support of the NFA and to end almost all communications with the group. The financial commitment from Burger King, announced in 2004, was to last for 3 years. Instead, the company said it would redirect the funds for national advertising to benefit all franchisees.

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