Looks like Santa came early this year for India!
Burger King is a quick-service restaurant(QSR) chain that is popular worldwide. Burger King has
entered India in 2014, pretty late as compared to their competitors like McDonald's, Pizza Hut,
and Domino's Pizza who entered India in the late 1990s.
But they are one of the fastest-growing international QSR chains in India during the first five
years of their operations based on the number of restaurants. (Source: Technopak)
As of 30th September 2020, the national master franchisee of the Burger King brand in India is
the second-largest food burger brand globally based on the total number of restaurants.
Burger King India is owned by QSR Asia. QSR Asia has exclusive rights to develop, establish,
operate, and franchise Burger King branded restaurants in India. This means they can add new
food offerings according to Indian tastes and preferences.
Now, let's dive into the details:
Significant Terms of Agreement for Rights Acquired
(i) As per the Agreement, Burger King India is obligated to develop and open at least 700
restaurants (including Company-owned Burger King Restaurants and Sub-Franchised Burger
King Restaurants) by December 31, 2026. The condition is that at all times, Company-owned
Burger King Restaurants should represent 60% of the total number of Company-owned and
Sub-Franchised Burger King Restaurants in India.
As of 11th December 2020, the total number of operational restaurants are 261(including
Company-owned Burger King Restaurants and Sub-Franchised Burger King Restaurants)
(ii) Burger King needs to open at least 35 Burger Burger King restaurants per calendar year until
the termination of the agreement.
(iii) Burger King India has to pay Burger King Asia Pacific, a non-refundable one-time fee on the
opening of each Burger King Restaurant of US$ 25,000 for the calendar years 2020 to 2022 and
of US$ 35,000 for all periods remaining thereafter until the Agreement remains in effect.
(iv) Apart from the one-time fee, Burger King In