Burger king

Burger king
Franchises
When Burger king Corporation began franchising in 1967, it relied on a regional franchising model where franchises would purchase the right to open stores within a defined geographic region. These franchise agreements granted BCK very little oversight control over its franchisees and resulted in issues of product quality control, store image and design and operations procedures.
This model remained in place until 1978 when Donald Smith initiated a restructuring of all future franchising agreement, disallowing new owners from living more than one hour from their restaurant, preventing corporations from owning franchises and prohibiting franchisees from operating other chains. This new policy effectively limited the size of franchisees from challenging Burger King Corporation as Chart House had. Smith also sought to have BKC be the primary owner of new locations and rent or lease the restaurants to its franchises. This policy would allow the company to take over the operations of failing stores or evict those owners who would not conform to the company guidelines and policies

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