Burger King franchisee with 57 units files for bankruptcy; owes around $37M to creditors

Burger King franchisee, Consolidated Burger Holdings, filed for bankruptcy on Monday, April 14. The company owes around $37 million to its creditors.

Consolidated Burger Holdings is one of the many Burger King franchisees to have filed for bankruptcy in recent years. Meridian Restaurants Unlimited, Toms Kings, and Premier Kings, which combined operated 378 restaurants, filed for bankruptcy in 2023. CBH, meanwhile, operates 57 restaurants.

The company has blamed high labor and operational costs, along with declining traffic, for its decision.

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More on Burger King franchisee's decision to file for bankruptcy

Consolidate Burger Holdings' restaurants are located in the Florida Panhandle, Tallahassee, and southern Georgia. It is now hoping to sell its assets through a court-supervised process.

The company's Chief Restructuring Officer, Joseph Luzinski, cited the reasons as:

“Recent increases in costs of shipping and food, decreased availability of labor and inflation.”

He also pointed out that “significant foot traffic and revenue declines without a corresponding drop in rent costs, debt or other liabilities” have led to this bankruptcy.

As per the bankruptcy documents (via NY Post), the company owes $36.64 million to around 1,000 creditors. It reported a net operating loss of $12.5 million in the 2024 fiscal year and a loss of $6.3 million in the 2023 fiscal year.

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Burger King sued Consolidated Burger Holdings last year

In January 2024, the fast-food chain sued the franchisee due to an alleged breach of an agreement. It stated that Consolidated Burger Holdings broke agreements about improving and remodelling their locations.

A Burger King representative told The Post:

“The Burger King system is far stronger today because of our focus on great Franchisees who are committed to investing in their restaurants and teams for the long-term.

“This means a small number of franchisees who are no longer investing in their restaurants will be exiting the system. We are working quickly to get these restaurants transferred to high-performing operators.”

The two parties eventually reached a settlement in September 2024.

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About Burger King and some current offers

The chain was founded as Insta-Burger King in 1953 in Jacksonville, Florida, by Keith G. Cramer and Matthew Burns. David Edgerton and James McLamore then purchased the company in 1959 and eventually named it Burger King.

The chain has grown globally ever since then and has over 19,000 locations across the world. It is known for its burgers, fries, onion rings, and more, and has become a household name.

BK also has some offers running in the United States currently:

1-cent cheeseburger offer (Image credits: BK.com)

- Until April 20, BK Royal Perks members can get a cheeseburger for just 1 cent on any purchase of $1 or more. It is only valid for Royal Perks members, but customers can sign up on the app or the website.

- For a limited time only, customers can get the second Big Fish sandwich for just $2 with the purchase of one Big Fish sandwich. This offer is also available for delivery.

- Customers can make their own two-piece or three-piece meals for $5 or $7, respectively. They can choose to mix and match anything from the menu in their meal, be it 2/3 burgers, 2/3 sides, or 2/3 drinks.

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