Burger King Worldwide Inc. announced it will be franchising 42 of its company-owned restaurants in the Atlanta area to GPS Hospitality, a newly created entity owned by Tom Garrett, former president of Arby's Restaurant Group, Inc.
All 42 restaurants are in the metro-Atlanta area, where Garrett is based. Exact terms of the deal were not disclosed.
"We believe he will be an ambassador for our brand for many years to come," said Linda Chadwick, southeast division vice president of Burger King Worldwide, in a statement.
Garrett, who resigned as Arby's chief executive in 2010, originally started working for Arby's as a franchisee. At the time of his resignation, Garret had been with Arby's for 29 years.
Garrett, who resigned as Arby's chief executive in 2010, originally started working for Arby's as a franchisee. At the time of his resignation, Garret had been with Arby's for 29 years.
"We're going to stay in the Burger King system, at least for now," Garret said of future expansion of GPS. "We're looking for some other opportunities and certainly growth through consolidation with other franchisees."
Burger King will be cutting costs by turning company-owned stores into franchised locations while increasing revenue with franchise fees and royalties.
The company has more than 12,600 locations around the world and it franchises about 94 percent of its sites.
Burger King, based in Miami, is the second-largest fast-food hamburger chain in the world behind McDonald's Corp.
