By: Economic & Finance Report
A Burger King franchise will not close its 800 stores in Russia. QSR (Restaurant Brands International) refuses to close its 800 subsidiary Burer King’s. The owners of the franchise have indicated they cannot close the restaurants because they have proceeded with selling their interest in the restaurants and that would take time to incur.
Based on their joint agreements with other partners and investors, they cannot just simply close their restaurants without the consent of their partners and investors, in the establishments. RBI which is partners with QSR in Russia, has demanded that the locations be closed; but QSR ahs objected to those demands and the franchise restaurants have remained opened.
QSR believes they are in the right because in their contractual obligations, there is nothing that stipulates them from having to close because RBI (the parent organization owner) indicates to do so. RBI has maintained that closing the franchise chain, would be a detriment to Russia and its people because of loss of revenue . Burger King has already denounced Russia in its conflict with Ukraine.
Many western businesses have indicated that it is very troublesome to pull their business assets out of Russia. The deals and negotiations in Russia are complex and don’t show a clear favorite angle for American companies. American companies remain in Russia because of the profitability that they can attain from the Russians.
As the escalation between Russia and Ukraine continues, many of the corporations, companies and businesses are on the side lines trying to see what the next chess move will be. -SB
Image Source: CNBC