57-unit Burger King franchisee files for Chapter 11 bankruptcy

GlobalData

Wed, Apr 16, 2025, 3:52 AM 2 min read

Consolidated Burger Holdings, a Burger King franchisee operating 57 locations across the US states of Florida and Georgia, has filed for Chapter 11 bankruptcy protection.

The Destin, Florida-based group, which oversees restaurants in three geographical clusters, has reported assets and liabilities between $50m and $100m.

The clusters comprise 18 restaurants in Tallahassee and Southern Georgia, 19 in South Florida and 20 in the Florida Panhandle.

The franchisee's total debt stands at $36.6m, including $14m in secured loans and more than $21m in unsecured obligations, as reported by QSR Magazine.

With just $179,000 in unrestricted cash, Consolidated has secured a $1.6m debtor-in-possession financing to support its reorganisation efforts.

The company aims to sell its assets through a court-supervised sale process.

Consolidated has cited several industry challenges that have impacted its operations: a highly leveraged balance sheet, decreased foot traffic due to Covid-19 and increased costs related to shipping, food and labour.

These factors have exacerbated its financial strain, leading to a drop in revenue and an operating loss of $12.5m in 2024.

Despite efforts to revitalise the business through extensive remodelling since 2018, the franchisee has struggled to overcome the economic pressures of higher labour costs, inflation and reduced customer visits.

The company's attempts to market its assets, engaging Peak Franchise Capital to reach out to 235 potential buyers, failed to yield a satisfactory sale.

Legal disputes with its franchisor, which date back to 2019, have added to its troubles.

Although a settlement was reached in September 2024, Burger King alleged defaults under the franchise agreements as recently as February 2025 but agreed to a temporary forbearance until 14 April.

"57-unit Burger King franchisee files for Chapter 11 bankruptcy" was originally created and published by Verdict Food Service, a GlobalData owned brand.

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