Wiggin and Dana's Franchise Law Blog

Spin Back

Realogy Corporation (NYSE: H), one of the four horsemen of the recent Cendant Corporation spin-off, announced that it has entered into a definitive agreement to be acquired by an affiliate of Apollo Management, L.P. The transaction is valued at approximately $9 billion, which includes the assumption or repayment of approximately $1.6 billion of net indebtedness and other liabilities. More information, and cautionary language, can be found by linking to Realogy’s December 17, 2006 Press Release.

Realogy Corporation is the world’s largest real estate franchisor whose brands and business units include CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, ERA®, Sotheby’s International Realty®, NRT Incorporated, Cartus and Title Resource Group. Realogy became a publicly traded real estate services company listed on the NYSE and a member of the S&P 500 on August 1, 2006, after it was spun off from Cendant Corporation. Before the spin-off, Realogy’s business units and brands operated as part of the Cendant Real Estate Services Division.

This agreement remains subject to approval of the holders of a majority of the outstanding shares of Realogy, and other customary approvals and closing conditions; consummation is anticipated in spring 2007. Realogy is free to solicit alternative proposals from third parties until February 14, 2007 – so if you have $9 billion or so lying around, give Realogy some thought.

Acquisitive Private Equity Fund Buys Schlotzsky's

The Atlanta private equity fund Roark Capital Group, acting through its affiliate Focus Brands according to this article, has acquired Schlotzsky's, the Austin, Texas-based quick casual restaurant franchisor. Schlotzsky's currently has 365 franchised and company-owned locations. Schlotzsky's will become a wholly-owned subsidiary of Focus, and Bobby Cox, who led the prior Schlotzsky's ownership group, will become a member of the Focus board. Schlotzsky's is the eleventh franchise brand that Roark has acquired; others include Carvel and Cinnabon.

It’s Good To Be King

Burger King Holdings Inc., the parent company of Burger King, announced on Wednesday that it plans to file documents with the SEC for an initial public offering in late February or early March. According to this article, the IPO is part of an attempt to keep up with rivals McDonald’s Corp and Wendy’s International. Both McDonald’s and Wendy’s are publicly traded companies. At least one restaurant industry consultant believes that McDonald’s recent success with the IPO of Chipotle Mexican Grill Inc. is a harbinger of “a very favorable market environment” for Burger King. Chipotle’s shares doubled from their offering price on their first day of trading. However, Burger King’s recent decline in sales may mean that it won’t “command that high of a price for its IPO,” according to one investor.

This article also comments on Burger King’s strained relationships with some of its franchisees. Burger King cut its ties with the National Franchisee Association in October 2005. Efforts at rapprochement since then have not been successful and the Association’s board recently resigned in protest.

On the bright(er) side, Burger King will advertise on Sunday’s Super Bowl for the first time in ten years.

IPOutstanding

BusinessWeek online (www.businessweek.com) reported yesterday that shares of Chipotle Mexican Grill were hotter than a jalapeño on the New York Stock Exchange yesterday. McDonald’s Corp. owned about 92% of Chipotle before the offer and still owns a majority interest. Chipotle sold 6.01 million shares of the 7.9 million shares offered and McDonald’s sold 1.82 million. Chipotle expects to receive net proceeds of over $120 million, which it will use to repay outstanding debt and support business growth.

They're Lovin' It

McDonald's Corp. reported a 53% jump in fourth quarter profits causing its stock to rise to a 5 1/2-year high on Tuesday. This article reports that the jump can be attributed to continuing strong sales at U.S. outlets and improving results in Europe. Also adding to the surge were extended operating hours, cashless payments, new menu items and stronger breakfast sales. CEO Jim Skinner said McDonald’s plans to repurchase about $1 billion of its stock in the first quarter and will open 800 new McDonald's restaurants this year as part of a $1.8 billion capital spending plan. Also, activist shareholder William Ackman, whose hedge fund Pershing Square Capital Management LLC owns about 4.5 percent of McDonald's stock, has been pressuring McDonald’s for a spinoff involving company-owned restaurants. McDonald’s is resisting Ackman’s requests.

Krispy Kreme Stock Continues to Fall

Bloomberg News reports that shares of Krispy Kreme fell 13% yesterday as investors' concern intensified regarding the financial viability of the doughnut giant's largest franchisee, Great Circle Family Foods LLC. Great Circle filed a lawsuit against Krispy Kreme last week alleging that the company was trying to force it into bankruptcy with unreasonable charges for supplies and was preparing a similar involuntary bankruptcy filing against its Colorado, Wisconsin and Minnesota franchisee Glazed Investments. See September 30, 2005 blog entry. Amidst shareholder lawsuits and accounting probes, Krispy Kreme stock has dropped 62% this year.

Talks of Spinoff Boost Value of McDonald's Shares

Less than one month after McDonald's announced its plan to spin-off its Chipotle chain of Mexican food restaurants, investment analysts are backing suggestions that the company spinoff a chunk of its company-owned McDonald's restaurants. According to MarketWatch, this speculation about a spinoff, which would make McDonald's Operating Company (McOpCo) a separately traded mega-McDonald's franchisee and the remaining portion of the company a franchisor and real-estate company, boosted the company's shares by more than 2% yesterday, at one point making the company the biggest percentage gainer in the Dow Jones Industrial Average.

More on Red Robin

Business Week Online ran this story on Michael J. Snyder, the former CEO of Red Robin, who left his position after an audit uncovered expenses that were inconsistent with company policy. Red Robin, a gourmet burger restaurant franchisor, is a public company that enjoyed a remarkable stock price climb from $12 a share in 2002 after its IPO to $63 a share in June. After Snyder and the company's CFO resigned in August, Red Robin lowered its annual forecast and the stock price fell 24%. According to the company, Snyder repaid $1.25 million to cover the disputed expenses and stays on as an unpaid consultant to the company. Snyder still owns a 31% interest in Red Robin's largest franchisee.

Always Get a Receipt

This story from the Denver Business Journal reports that Red Robin continues to expand despite serious personal expense issues with its former CEO, ending in his ouster and at least two shareholder lawsuits. Apparently, an audit revealed that the CEO claimed $1.25 million in personal expenses, including chartered airplanes and entertainment expenses inconsistent with the company's policy. The company's CFO was also dismissed as a result of the CEO's expense issues.

Burger King Keeps the Ball Rolling

Reporting a 60% EBITDA gain for the fiscal year, Burger King is looking to re-enter the stock market. When Diageo sold it in 2002, Burger King went private, but the company struggled to maintain its position as the second largest player in the burger market. See July 12, 2004 blog entry. Based on the strong gains, Burger King's CEO announced that an IPO for the company may come in this fiscal year. The Brand Autopsy Blog reprinted a Wall Street Journal interview with Brenneman on his successful strategy in May 2005, available here.

McDonald's to IPO Part of Chipotle

McDonald's Corporation announced on Wednesday that it plans to sell a minority stake in the Chipotle Mexican Grill chain through an IPO. According to the Chicago Sun Times, McDonald's expects to launch the IPO in the first quarter of 2006 and invest $1.8 billion in capital expenditures. McDonald's also intends to open 850 additional McDonald's restaurants in 2006.

Wendy's Announces Accelerated Share Repurchase Following Plans to IPO Part of Tim Horton's

Wendy's announced today that it will buyback 2 million shares of its common stock for approximately $98 million in an accelerated share repurchase transaction. In a corporate news release, the company stated that this repurchase is consistent with and a part of a comprehensive plan to offset dilution, improve business and enhance value for its shareholders. In July, Wendy's announced that it plans to sell 15-18% of Tim Hortons, a coffee and fresh baked goods chain, in an initial public offering. The company plans to retain ownership of the remaining 82-85% of the Tim Hortons business and hopes to complete the IPO by 2006.

7-Eleven Sells 200 Colorado Franchises

7-Eleven, Inc., which owns or franchises over 5,800 convenience stores in the United States and Canada and licenses over 22,000 stores worldwide, is selling 200 company-owned stores in Colorado to franchisees. After offering its store managers a first right of refusal, 7-Eleven opened the franchises purchases to the public. According to the Denver Business Journal, the average total up-front cost for one of those franchises is approximately $118,000, which includes the franchise fee, inventory, licenses and permits, bonds and cash register funds.

Jackson Hewitt Reports Rise In Tax Return Preparations

According to Jackson Hewitt's reported preliminary annual tax filing results for the fiscal year ending April 30, 2005, tax returns prepared by the company increased by 5.9 percent. In 2005, Jackson Hewitt's 4,871 franchised locations and 613 company-owned locations prepared 3.3 million tax returns. Michael Lister, Chairman and CEO of Jackson Hewitt, attributes this growth in tax preparation to the strength of Jackson Hewitt's franchise business model and the ability of its franchisees to react to the competitive environment. In June 2004, Jackson Hewitt sold 37.5 million shares of stock for $637.5 million. Jackson Hewitt is the country's second largest tax preparation service with over 5,400 franchised and company-owned locations.

Australians to the Rescue

As reported in the Miami Herald, an Australian investment company has purchased 6.5 percent of Krispy Kreme stock. Combined with the investment of a Tennessee investment company that recently increased its Krispy Kreme holdings, the boost in share purchases is said to be designed to ease Krispy Kreme's financial straits.

An IPO for Arby's

The New York Post reports that Triarc Cos. is in negotiations to merge the Arby's chain with RTM Restaurant Group. RTM is Arby's largest franchisee, operating more than 700 Arby's restaurants. In the transaction, Arby's would acquire RTM for an expected $200 million in cash, but RTM would continue to own a 25% stake in the company. Though the parties are still in the beginning stages of negotiations, the expectation is that along with the finalization of the merger, Triarc will file registration papers for Arby's IPO as early as next month.

An IPO for Arby's

The New York Post reports that Triarc Cos. is in negotiations to merge the Arby's chain with RTM Restaurant Group. RTM is Arby's largest franchisee, operating more than 700 Arby's restaurants. In the transaction, Arby's would acquire RTM for an expected $200 million in cash, but RTM would continue to own a 25% stake in the company. Though the parties are still in the beginning stages of negotiations, the expectation is that along with the finalization of the merger, Triarc will file registration papers for Arby's IPO as early as next month.

Cendant Spins Off Wright Express

Forbes magazine reports today that Cendant will spin-off its Wright Express unit for potential revenue of $1 billion. This move comes as Cendant focuses its business on its core travel and real estate markets. Last year, the company presented an IPO for Jackson Hewitt, the franchisor of tax preparation service businesses. Wright Express offers business and marketing services for commerical and government automotive fleets. The New York Times said that this divestiture would likely end the company's efforts to shed its assets as it streamlines its services.

Sale of Church's Chicken Brand

Forbes.com reports the sale agreement between AFC Enterprises, Inc. and Crescent Capital Investment, Inc. of the Church's Chicken franchise system. The sale price has been reported at $390 million and the sale will close by the end of the year.

Applebee's Launches New Financing Program for Start-up Franchisees

The Business Journal reports that Applebee's International Inc. and Capital Growth Advisors LLC will allow Applebee's franchisees to access a $250 million line of financing to open new stores. Applebee's sought a financing relationship for its franchisees based on its belief that consolidations in the financial industry are reducing the resources available to franchisees by reducing the number of institutions willilng to lend money to fund new franchises.

Rising Domino’s

At a conference at the University of Michigan on Friday, David Brandon, CEO of Domino’s Pizza, Inc., said that entrepreneurs frequently under-value the growth potential of their own companies. Brandon used Domino’s as an example. Tom Monaghan sold the company to Bain Capital for $1 Billion in 1999. When the company went public in July this year, it received a lukewarm welcome on Wall Street, selling shares below the company’s estimates. Brandon’s job, as he views it, is to create value and growth potential for the company. Based on the rising stock price (up to $15 per share) and analysts’ new favorable review of the stock, Brandon appears to be fulfilling his job requirements. This article suggests that Bain’s next step is to issue another round of stock.

Schlotzsky's for Sale

The Austin-based sandwich shop franchisor filed for Chapter 11 bankruptcy protection last month. This month, the company and its investment firm, Trinity Capital, are reviewing offers from more than 50 investors. The terms of the sale, which will require bankruptcy court approval, have not been released.

Mexican Chain From Minnesota Suffers Additional Loss.

According to this article in Nation’s Restaurant News (reprinted from the Akron Beacon Journal), the Chi-Chi’s restaurant chain continues to suffer substantial losses. The former owner of the chain, Prandium, Inc., filed for bankruptcy protection last October. In addition, Outback Steakhouse, Inc. bought 76 properties in the U.S. Bankruptcy Court auction this past August. The article posits that the closing of the Akron-area restaurants may mark the death knell for the 30-year-old chain founded by Marno McDermott in Minneapolis.

AFC Sells Cinnabon to Roark Capital.

The Wall Street Journal reports today that AFC Enterprises, Inc. has agreed to sell the Cinnabon franchise chain to Roark Capital Group for $30.25 million. AFC formerly held four franchise chains including Cinnabon, Popeye’s Chicken and Biscuits, Church’s Chicken, and Seattle’s Best Coffee, which it sold to Starbucks Corporation last year. As part of the sale to Starbucks, AFC retained Seattle’s Best Coffee international franchise rights and the franchise rights for Hawaii and U.S. military bases. According to the Wall Street Journal article, the sale of Cinnabon to Roark will include these reserved franchise rights for Seattle’s Best Coffee.

Meanwhile, as AFC reduces its franchise holdings (the chain has stated that it is exploring options for Church’s Chicken), Roark continues to grow. The Atlanta-based, private equity firm holds majority stakes in Carvel Corporation and Money Mailer, LLC.

Burger King IPO Goals Confirmed

Earlier this week, a story ran in the Financial Times Deutschland about Burger King's plans to file an IPO within the next two years. This article from Nation's Restaurant News confirms that story and adds that Burger King's promotion of Betty Ann Blandon to vice president audit and risk management is part of the company's public offering vision. According to the president of Burger King North America, Ms. Blandon has been "instrumental in our Sarbanes-Oxley Readiness Program in anticipation of becoming a public company."

Burger King Plans IPO

Burger King appears to be eyeing the stock market again. Just two years after Diageo sold the fast food chain to a triumvirate of investment firms, Burger King's European director of operations, Pascal Le Pellec, announced that the company will likely go public in two years. Contrary to reports of the burger giant's recent hard times amidst franchisee bankruptcies and executive changeovers, Le Pellec told the Financial Times Deutschland (in an interview reported in the Malaysian Star) that the chain's owners were "extremely satsified with Burger King's development in the US and internationally."

Building the Perfect Bear

The Build-a-Bear Workshop is about to go public. The Wall Street Journal reported last week that the company filed its initial public offering on August 12. The company plans to sell $125 million in common stock but did not disclose the number of shares to be sold or their estimated value. No further filings have been made. The company owns and operates 160 stores in the United States and Canada and franchises stores in other countries.

The Ins and Outs of the NASDAQ

On the same day that AFC Enterprises received word from the NASDAQ Listing Qualifications Panel that its stock would begin trading again on the NASDAQ, Schlotzsky's was notified that its stock would be delisted by NASDAQ as a result of the company's Chapter 11 filing on Tuesday.

AFC Enterprises is the franchisor of Church's Chicken, Popeye's Chicken and Cinnabon, as well as the franchisor of Seattle's Best Coffee in Hawaii, on military bases and outside the United States. Its stock was delisted in August 2003 and has been trading on the National Quotation Service Bureau for unsolicited trading since then.

Schlotzsky's filed its Chapter 11 bankruptcy petition on Tuesday. Its stock closed on Wednesday at 33 cents per share, down from $1.65 at close on Monday.

Schlotzsky's Files Chapter 11

Just months after its board replaced the CEO, Austin sandwich shop franchisor, Schlotzsky's, filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code. In the bankruptcy filings, the company listed assets of $111.7 million, including $64.8 million in intangible assets, and liabilities of $71.3 million.

Domino's Second Quarter Report

After its IPO, Domino's reported a decline in second quarter earnings with net income of $15.9 million, compared with $17.5 million from the second quarter of 2003. Despite increased cheese costs, Domino's did not attribute the decline to higher operating costs but rather to increased interest expense from a debt incurred from the company's recapitalization in 2003. According to Domino's, the increase in cheese costs is generally covered by increasing its product prices to its franchisees, who then raise the pizza prices to consumers.

McDonald's Reports Big Profit in Second Quarter

Charged by sales of premium salads and new breakfast offerings, McDonald's posted a 25% profit in the second quarter according to this article in Forbes.com. Although the company has had a difficult year -- with the death of their CEO Jim Cantalupo in April and the diagnosis of cancer in Charlie Bell, Cantalupo's replacement, just weeks later -- the company is enjoying this period of growth, attributing it to improved operations, longer operating hours and the installation of credit/debit technology at the restaurants. McDonald's press release and the supplemental information for the period ended June 30, 2004 can be accessed here and here.

Noodles & Co. Possibly Going Public

The Denver Business Journal reports that the Boulder-based restaurant chain, Noodles & Co., is considering going public next year. CEO Aaron Kennedy says that although there are no definitive plans for the company to go public, there is the possibility that it will do so next year. He also explains that the restaurant industry remains strong since the market downturn and that the timing could be right to launch an IPO.

Last year, Noodles launched its franchise program. It entered into agreements with five multi-unit franchisees who plan to build 141 Noodles & Co. stores nationwide. In the nine years that the company has been in operation, it has built 90 company-owned restaurants in nine states.

Falling Domino's

On its first day of trading on Wall Street, Domino's Pizza stock disappointed investors, falling 4% from the $14 price of the private stock offering that closed Monday. Domino's raised $339 million from the IPO, although it had initially estimated that the IPO price would be set at $15 to $17 per share. On Tuesday, the stock closed at $13.50. According to the company filing with the SEC, the IPO funds will be used to, among other things, pay down a portion of the company's long-term debt which is now in excess of $900 million. The chain's founder, Tom Monaghan (who bought his brother out of the business in 1965 for a VW Beetle), owns 6.3% of the outstanding shares.

Jackson Hewitt Sells 37.5 Million Shares in IPO

In an initial offering that divested Cendant Corporation of its ownership interest, Jackson Hewitt yesterday sold 37.5 million shares of stock for $637.5 million. The shares sold for $17, a bit less than the $18-20 the company predicted in its SEC filing. Jackson Hewitt will not receive the proceeds of the offering because the shares were sold by Cendant. Jackson Hewitt is the country's second largest tax preparation service with over 4,900 franchised and company-owned locations. The shares will trade on the New York Stock Exchange under the symbol "JTX."

Burger King Sees Same Store Sales Grow.

The Wall Street Journal (subscription required) reported Thursday that Burger King announced its fourth consecutive month of same store sales growth. May sales for the burger chain rose 7.5%. BK's CEO, Brad Blum, believes that momentum is starting to grow. The chain plans to launch its Angus steak burger (although there is some trademark dispute over the product -- see blog dated June 2, 2004) later this month.

More IPOs in Franchising's Future.

GNC Corp., the parent of General Nutrition Centers, has filed a preliminary copy of a prospectus with the SEC, evidencing its intention to offer public stock on the New York Stock Exchange. According to the papers, the company expects to raise approximately $278 million in net proceeds from the offering. A copy of the SEC filing is available here.

Domino's IPO Under the Microscope

Business Week provides an in-depth analysis of the Domino's planned IPO -- including a review of Domino's same store sales (which increased by 1.6% in 2002 and 2.6% in 2003), increase in cheese prices, Domino's long-term debt and the performance of company-owned stores (which account for 28.2% of total annual revenue).

Everybody Else Is Doing It, So Why Can't We?

In the wake of a franchising IPO explosion -- that may be too strong -- Domino's Pizza has announced that it plans to set its initial public offering at $24.1 million with shares priced at $15 to $17. Domino's operates and franchises more than 7,400 restaurants in the U.S. and other countries. Under tthe terms of the IPO set forth in an amended offering filed with the SEC, Domino's IPO could raise more that $150 million in proceeds and $250 million from shareholders.

IPO for Sylvan Learning Centers

On Friday, Sylvan filed an initial public offering seeking a maximum of $288 million in proceeds. The IPO was filed by Sylvan's parent, Educate Inc. Sylvan offers tutoring services for children from kindergarten through twelfth grade. According to this article from Investors.com, Educate Inc.'s IPO coincides with an expected two million student increase in enrollment in U.S. elementary and secondary schools between 2003 and 2013.

Krispy Kreme Suffers Wall Street Drop

After a couple of years of record-breaking sales, Krispy Kreme faces what seems to be its first negative review from Wall Street. The Triad Business Journal reports that last month, Krispy Kreme stock dropped 10%, leaving investors to wonder if the Krispy Kreme craze was a passing fad. Some analysts theorize that the company's push for store openings was an effort to meet profit targets while masking mediocre store sales. Focusing on the slide in store sales (5.7% decline) rather than the increase in store development (99 new stores in 2003), many investors and analysts alike are shying away from further investment in the company. The company intends to open more Krispy Kreme stores in 2004 than in any previous year.

Jackson Hewitt Files IPO

The Wall Street Journal reports that the Cendant company Jackson Hewitt, Inc., the second largest tax return preparer in the U.S., has filed an initial public offering to sell up to $100 million in common stock in the company. Cendant currently owns 100% of the stock and has not disclosed how many shares will be made available in the offering. Jackson Hewitt has 4,295 franchised and 642 corporately owned offices around the country.

Good Sales

Domino's Sales Up in Britain. Placing orders from the internet and interactive television, UK customers contributed to Domino's 2003 sales of 142.3 million pounds in UK and Ireland. The 48% rise in internet and interactive television orders (as compared to 2002) constituted 4.5% of Domino's total sales in the UK.

Marriott Has Promising Fourth Quarter. After three years in a down cycle for high-end hotels, Host Marriott posted a net profit of $150 million in the fourth quarter of 2003. In another bright spot, Marriott was named the most admired company in the lodging industry by a Fortune magazine poll.

Ground Round Files Bankruptcy

American Hospitality Concepts, Inc., the parent of the Ground Round Grill & Bar restaurant chain, filed for Chapter 11 bankruptcy protection in Boston. This filing followed the abrupt closing of 59 corporate-owned Ground Round restaurants last Friday. One hundred thirty franchised Ground Round restaurants remain open. For another report, see the Springfield News Sun. No schedules have been filed.

Friday's Stock Surges. Last Tuesday,

Friday's Stock Surges. Last Tuesday, TGI Friday's stock moved out of the penny stock position (85 cents per share) with a 15% increase to $2.83 per share. Newsday speculates that the stock price increase may be attributed to the anticipated change in management of Friday's parent company. The CEO is slated to leave in April.

Buffalo Wild Wings IPO. The

Buffalo Wild Wings IPO. The Wall Street Journal (subscription required) reports that the Buffalo Wild Wings IPO took off on the stock market last week. While the company sought to sell 2.7 million shares at $14-$16 per share, the demand for the shares ultimately raised the price to $16-$17 per share. Ultimately, the shares were trading on the NASDAQ for $21.73 per share. The pricing of shares above the range set by the company is unusual for restaurants -- even Krispy Kreme had not accomplished this feat in its IPO.

Buffalo Wild Wings Goes Public.

Buffalo Wild Wings Goes Public. Buffalo Wild Wings, a Minneapolis-based franchisor, is raising $51 million with its recent IPO and apparently doing very well. According to CBS Market Watch, the company raised its share prices form $14 to $16 yesterday based on the sign of strong demand. The stock is now at the high end of the $16-$17 range.

Snyder's Files Bankruptcy; Plans to

Snyder's Files Bankruptcy; Plans to Sell or Close Drug Emporium. Snyder's, the owner and franchisor of the Snyder Drug Stores chain, announced today that it has filed for Chapter 11 protection. The chain plans to sell or close its Drug Emporium subsidiary, which Snyder's bought out of bankruptcy a few years ago.

Fantastic Sams Bankruptcy Bid Approved.

Fantastic Sams Bankruptcy Bid Approved. Cheveux Acquisition, a group of four entrepreneurs, won the bankruptcy auction and will pay $17 million to acquire Opal Concepts, the parent company of Fantastic Sams. According to the Star Tribune, Fantastic Sams currently has 1,300 stores in the US. See earlier Wiggin & Dana blog entry for a previous story on the bankruptcy.

Fantastic Sams sold in bankruptcy:

Fantastic Sams sold in bankruptcy: Thanks to the decision of a California bankruptcy court, a group of entrepreneurs is set to acquire hair-care franchise Fantastic Sams for just over $17 million. The entrepreneurs, who own New England franchise rights for the chain already, represent Cheveux Acquisition and expect to close on the purchase August 4th. Full story at Reuters.

Burger King bankruptcy: 28 Burger

Burger King bankruptcy: 28 Burger Kings in Kansas and Nebraska have filed for Chapter 11 bankruptcy in an effort to reorganize some $30 million worth of debts. MSNBC cites national management changes within the Burger King company structure as well as difficulties with marketing and sales (including the recent Coca-Cola lawsuit; see earlier W&D blog entry) as a spur to the filing.