Burger King cancels Ibersol contract

Burger King has cancelled its contract with Ibersol to further “develop the brand” in Portugal, claiming non-compliance over the opening and refurbishment of its restaurants, in a decision that Ibersol considers “unfair and disproportionate”.

According to a note sent to the Portuguese stock market commission CMVM, Ibersol confirmed that it would “study the resulting implications (of the decision to cancel the contract) with its advisors” and “will take measures deemed necessary to protect its interests”.
According to the communiqué, Burger King (BK) Portugal informed “its decision to cancel the contract to develop the brand in Portugal, invoking the failure to comply with the obligation to proceed with opening two restaurants and the refurbishment of tree restaurants in 2021 (in addition to the 12 restaurants opened and seven refurbishments done in 2021”.
The development contract would have enabled Ibersol to build 27 new restaurants in 2022 and 2023.
Ibersol, which operates an umbrella of fast-food brand franchises in Portugal, many in shopping centre food courts and prime downtown city locations, states, “The decision taken by Burger King Portugal is unfair and disproportionate, in particular because the completion of the two restaurants and the refurbishments of another three would have been completed by 30 April”.
Ibersol also states that the limitations placed on Portuguese companies during the transactional year in which public lockdowns and limiting working regimes made the normal functioning of public services impossible, were not “adequately appreciated” by BK Portugal, and which “caused significant delays in getting planning permission for projects”.
As to the franchises on the 119 Burger King brand restaurants which Ibersol holds on Portuguese territory, these remain “valid and applicable” and Ibersol guarantees that it will “continue to operate these establishments under the highest standards of service and quality”.
The Ibersol Group has franchises on a range of brands in Portugal including KFC, Pans & Company, Pizza Hut, Taco Bell, Pasta Caffé, Ribs – True American Barbecue, Sol. MiIt, o Kilo, Vog, and others.