Financial Struggles Push Franchisee to Seek Chapter 11
Burger King Franchisee Consolidated Burger Holdings, which operates 57 restaurants across Florida and Georgia, has filed for Chapter 11 bankruptcy protection. The Destin, Florida-based operator cited significant financial strain caused by a combination of pandemic aftershocks, rising operational costs, and ongoing legal disputes. According to court filings, the company’s assets and liabilities each fall between $50 million and $100 million. Its debt totals $36.6 million, including $14 million in secured loans and more than $21 million in unsecured liabilities.
TheBurger King Franchisee has only $179,000 in unrestricted cash available but has secured $1.6 million in debtor-in-possession (DIP) financing to maintain operations during its restructuring. As part of its bankruptcy strategy, Consolidated intends to sell its assets through a court-supervised process. The company’s restaurant portfolio is organized into three clusters: 18 restaurants in Tallahassee and Southern Georgia, 19 in South Florida, and 20 in the Florida Panhandle.
Pandemic Fallout and Cost Surges Hit Operations
The filing highlights the severe challenges the Burger King Franchisee has faced in recent years. The COVID-19 pandemic significantly reduced customer foot traffic, particularly in dine-in and urban locations. Compounding this were steep increases in the cost of food, shipping, and labor—factors that have burdened many quick-service restaurant operators across the country.
Despite investing in extensive restaurant remodels since 2018 in an attempt to boost performance and customer appeal, Consolidated reported an operating loss of $12.5 million in 2024. Inflationary pressures, including rising wages and food prices, continued to outpace revenue recovery efforts. These difficulties were intensified by the company’s already highly leveraged financial structure, leaving little room to absorb economic shocks or operational setbacks.
Efforts to find a buyer for the business also fell flat. Consolidated hired Peak Franchise Capital to explore sale options and contacted over 230 potential investors, but no satisfactory deal materialized. The lack of investor interest, coupled with ongoing losses, left the company with few viable options outside of bankruptcy.
Legal Tensions with Franchisor Add to Woes
Legal complications have continued to put financial pressure on Burger King Franchisee Consolidated Burger Holdings. The company has been embroiled in disputes with Burger King’s parent company since 2019. Although a settlement agreement was reached in September 2024, Burger King later alleged additional defaults under the franchise agreements earlier this year. In response to its worsening financial condition, the franchisor granted a temporary forbearance period, which extended through April 14, 2025.
This legal uncertainty, alongside operational and financial pressures, created a volatile environment for the Burger King Franchisee. The Chapter 11 filing aims to stabilize operations while enabling Consolidated to seek new ownership or investment through the court-approved asset sale.
The case underscores broader challenges facing fast-food operators in the post-pandemic landscape, where shifting consumer habits, inflation, and tight labor markets are squeezing margins—even for long-standing franchisees of major brands like Burger King.
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