to leave Russia. The franchise system preferred by the big Americans makes Russia’s exit almost impossible

For at least a decade, Burger King’s strategy for European expansion is based on mergers, especially with franchises, to open and operate new projects, Reuters wrote.

And now, the fast food chain has a big problem in Russia. It ended up withdrawing its cooperation or closing about 800 named locations following Russia’s invasion of Ukraine in February.

Burger King ended corporate support for its Russian locations in March. Parent company Restaurant Brands International Inc (RBI) (QSR.TO), which was formed in 2014 when Burger King merged with Tim Hortons, said on March 17 that it intends to sell its shares in the joint venture. READ MORE

However, the current sanctions imposed by Western countries on Russia limit the pool of potential buyers, said a person familiar with the matter.

Reuters cannot determine the status of any negotiations.

Part of the problem, lawyers said this week, is the complexity of the joint master plan, which allows Burger King to profit from the Whopper market without the risk of using capital. him.

Unlike rival McDonald’s Corp (MCD.N), which has the majority of its locations in Russia and plans to sell them to existing franchises, Toronto parent company Burger King has no home any party in Russia.

Liz Dillon, a partner at Lathrop GPM in Minneapolis, said, “There is a big deal in the current legal situation that does not give franchisees and franchisors in Russia a good option.”

According to an open letter to employees on March 17 by RBI International CEO David Shear, RBI holds 15% in Burger King Russia Ltd, its joint venture in Russia.

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