Burger Fuel Worldwide Limited (BFW) have today announced they will be proceeding with their plans to open in the United States. The first BurgerFuel® restaurant will be located in the mighty Midwest, which has been chosen following a detailed study of the United States and its potential for the brand’s success. 

The announcement coincides with the news that BFW has officially ended its collaboration agreement with Subway® and Franchise Brands, LLC (Franchise Brands), following the death of its founder, Fred DeLuca, almost a year ago. BFW will however continue to maintain a close relationship with the group, who will retain their 10% holding in BFW, as well as their position on the BFW Board of Directors.

BFW Chief Executive, Josef Roberts, explains; “The passing last year of Subway® founder, Fred de Luca, our key contact within the organisation and the ultimate vision behind the partnership, has meant that Franchise Brands and Subway’s priorities have had to change. It is clear that for now they have their own challenges. Given this situation we felt that it would be best to seek an end to the operating partnership, which if not in full swing, only delays us from developing in the United States.” 

Roberts requested a release from the Mason Roberts Holdings Limited (MRHL) Sale and Option Agreement held by Franchise Brands together with the BFW-Subway® Collaboration Agreement and this request has now been granted. He adds that “whilst this was not the outcome the company envisioned a couple of years ago when the deal was done, business at this level is always challenging and we have to be adaptable to such unavoidable circumstances. I can say that after all this time, we are pleased to be free to move forward with certainty. The US is a big place and we still see many opportunities for BurgerFuel.”

Roberts said that he was thankful to Subway® and Franchise Brands for the co-operation afforded BFW in working through matters to a mutually beneficial outcome. He said it was “important for shareholders to note that through this partnership we have learnt a huge amount about doing business in the United States and also about successful franchising in this market. Above all, we have made many connections in the United States which will help us move forward independently of Franchise Brands. Our focus is on establishing there as soon as possible and we feel there are now a number of ways of doing that, outside of this partnership.”

BFW states that the relationship with Franchise Brands and Subway remains strong. They will retain their 10% stake in the Company and BFW will continue to receive guidance from the group, with John Pfannenbecker from Subway® and Franchise Brands retaining his position on the BFW Board of Directors.

The termination of the Collaboration Agreement will also negate the requirement to pay a 1% ongoing collaboration fee to Franchise Brands and this, together with other strategic moves the company is making, will have a positive financial effect on BFW’s results.

Roberts goes on to say that he and BurgerFuel® founder, Chris Mason, are excited to announce the company will be proceeding with the first United States based BurgerFuel® restaurant, and that this will be located in the Midwest. He said that BFW will  provide the market with more details as soon as possible but that BFW’s USA based development team including Mason, were now fully relocated to Indianapolis with a focus on opening the first BurgerFuel® restaurant in that region.

“We are confident that we will get something off the ground in America soon and that our goal of opening in the USA will still be fulfilled. Let’s not forget we have a strong business, no debt and a significant amount of knowledge about doing business in the USA which frankly has been necessary to understand.”

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