Burger King is pursuing a major U.S. turnaround by refranchising hundreds of its company-owned restaurants. The parent company, Restaurant Brands International, acquired Carrols Restaurant Group, the chain’s largest U.S. franchisee, for about $1 billion in 2024, adding over 1,000 locations to its portfolio. However, Restaurant Brands plans to sell most of these back to smaller, locally based franchisees who are more actively involved in their communities. Burger King currently aims to operate around 300 company-owned stores, with over 6,000 franchisee-run locations fueling its future growth.

Jeremy Kline exemplifies the new breed of franchisees Burger King is targeting. After years in restaurant leadership roles, he purchased 16 restaurants in Salt Lake City earlier this year. The franchise strategy prioritizes operators who live close to their restaurants, promoting frequent visits and stronger accountability for quality and customer service. This shift away from larger private equity-backed franchisees is challenging but supports Burger King’s vision of long-term, locally invested operators.

The refranchising effort is part of a broader recovery plan that began in late 2022, including marketing revamps, food quality improvements, and store renovations. This strategy has helped Burger King surpass Wendy’s as the second-largest U.S. burger chain by sales and contributed to an 8.5% increase in U.S. same-store sales recently. While the refranchising process is slower than initially expected, Burger King is focused on selecting franchisees who will maintain profitability and customer-centric operations, rather than simply chasing rapid expansion.

Restaurant Brands has committed over $1 billion to modernize the Burger King brand with extensive remodels, technology upgrades, and facility enhancements. Franchise owners like Kline, CKJ Management in Florida, and first-time franchisee Brian Orlando are working on improving the culture and customer experience at their locations. The company aims for 85% to 90% of its U.S. restaurants to feature updated designs by the end of 2028. As Burger King invests in both its franchisees and its physical footprint, the chain hopes to sustain its U.S. comeback and boost its market position further.