O'Fallon Burger Kings Face End of Franchise Agreement

Burger King Corporate, based in Miami, Florida, says that the owners of five Missouri Burger King locations have breached their franchise contracts.

Two O'Fallon Burger King restaurants are among the five owned by Joseph R. Gunther and Vicki Gunther that are the target of a lawsuit by Burger King Corporate.

The case was filed on Jan. 28 in Miami, Florida where the Burger King corporate offices are located.

The lawsuits state that the two O'Fallon locations—609 S. Main and 2882 Hwy. K—failed to make franchise payments. The monthly payments, which are a percentage of the restaurant's gross sales, cover advertising, promotions and the "use of the Burger King System and the BK Marks."

Those marks include the Burger King and Whopper names as well as logos, symbols and slogans.

Burger King Corporate notified the restaurants of their breach of agreement on Oct. 24, 2012 and ended the franchise agreements with the two locations on Jan. 25, 2013.

Terminated franchisees are prohibited from identifying themselves as either a current or former Burger King franchise, the lawsuit states, and must remove and return all Burger King signs, logos, menu boards, posters, uniforms, plates, cups, tray liners and other items bearing the Burger King name.

BKC is seeking an injunction against the two franchises to prevent them from "leading the public to believe that the restaurants are in any manner connected with BKC."

BKC is seeking damages for trademark infringement as well as punitive damages and costs.

Patch attempted to contact Burger King Corporate about the status of the lawsuit and received the following statement:

"Burger King Corp. does not comment on pending litigation, however, it is unlikely that the BURGER KING® restaurants will close."

The other Burger King locations included in the lawsuit are in Jefferson City, Moberly and Columbia.

Jim Frain February 27, 2013 at 02:42 PM
Hope that something works out on the Burger King Franchise problem...The City of O'Fallon does not need two vacant buildings and the loss of jobs for those working there.
Cathy Mueller Hoffmann February 27, 2013 at 03:53 PM
Philip February 27, 2013 at 06:32 PM
Bring in Captain D's which is an affordable meal package.
You are correct Mr. Frain! We DO NOT need any additional vacant buildings or store fronts in the Greater O’ Fallon Community. The way that the City deals with business development and creating jobs needs to be closely looked at. Look at “Megan’s Crossing” and all of the vacancies (86-percent) that are located in a Special Transportation Development District (T.D.D.) that is charging One (1) percent additional Sales Tax than any other parts of the City. Not to mention the deal that the Mayor and Former City Administration blew away to O’ Fallon Illinois was “Menard’s” that would have brought the City of O’ Fallon $750,000 in additional tax revenues of the City’s Portion with no Tax Incentive or Tax Abatement. Because we fought with Menard’s they took their business and their money (Our Tax Dollars) to O’ Fallon, Illinois. A huge loss to O’ Fallon, Missouri. That is why I am running for the City Council, to bring positive change, development and economic fuel to our City. AC Dienoff City Council Candidate/Community and Public Advocate
Tom Smith February 27, 2013 at 07:51 PM
If the Gunther family cannot come to an agreement with BKC, if not for both at least one location. The second location most probably the one on K, then a Popeyes Chicken would also work. The seafood resturante as already mentioned also a great idea.
Sscott February 28, 2013 at 03:58 AM
we need a caption d,or long john silver there both in st peters we could use a dennys not everyone eats buffet,wings or rice.
Bobby/Leigha Balchus February 28, 2013 at 03:34 PM
If I could get on my soap box please. I own a franchise here in O'Fallon. (not a restaurant). I see all these comments about they should build blah. I really would be nice to have a this or that.... Let me ask you, how often would you visit there? once a month? maybe twice? O'fallon is a tough place to own a business. I wish the city would encourage growth instead of just collect. (There are ALOT of fees/ taxes) Are you supporting the local businesses? We all hate to see vacant buildings. We put our life savings into these things. Countless hours, energy, and most of all, our $$. Believe it or not, it takes three years for a business to make a profit. During those three years, 50% fail. Most business owners make less then the employees they hire so they can keep the doors open. Take a look at what has opened lately. O'fallon Nutrition, Firehouse subs,a new karate place (sorry forgot the name) and countless others up and down Hwy K. Money is tight everywhere. Our paychecks went down (thank you government) our medical and home insurance went up (again, Thank you government) and everyone is careful where to spend their money. I get it. But I ask you to please, do your research. Look into what companies you support. Do you trust them, are they local, would you recommend them to others and most importantly, are you helping them stay open. OK, I'm getting down off my soap box now. Sorry for the rant. Stay warm cause its freezing.
Jim Frain February 28, 2013 at 04:18 PM
Great Point Bobby...It is so very important for all of us in O'Fallon to support our local businesses. Small business owners in O'Fallon (and other cities too) give their lives and their savings and the hardest efforts humanly possible to make a success of their business. I suggest that the O'Fallon Patch feature a locally owned business every week with a full run down of the owner's, what their business offers and a reminder that 80,000 people in O'Fallon should frequent these local businesses.
Jim Pepper February 28, 2013 at 05:09 PM
Jim Pepper February 28, 2013 at 05:20 PM
Great comment. Don't know if you are aware or not, but I am trying, almost on a daily basis, to revamp our processes in the city to make it more business friendly. Getting rid of some of the archaic rules and ordinances that stunt the growth.
Tamara Duncan February 28, 2013 at 06:07 PM
Thanks for the comments, everyone. Jim -- we do our best to feature O'Fallon businesses. Did you see last week's? Cupcake Amore Offers Gourmet Cupcakes, Birthday Party Rooms. Tomorrow we'll look at the 30th anniversary of Fritz's Frozen Custard, and every Friday we give readers a chance to review local restaurants. If you own a business and would like to be featured in a profile, please email me. (And if you can get me pictures, that helps move things along faster!)
Jim Frain February 28, 2013 at 06:34 PM
Tamara, The Patch does a great job in focusing on local businesses.....I know that my friend Pete Gowran with the O'Fallon Main Street Marketplace loves the Patch...It has helped his business dramatically. I immediately go to your coverage of local businesses...it makes me feel good about our city and our local businesses.
Mr. Frain good point in stating that we should purchase at home when ever possible. How ever that is not the case of the Mayor and City Council and the Policy of the City when purchasing goods, services, office supplies, equipment, vehicles, heavy duty trucks, machinery and other basics outside of the City Limits and outside of our County and across State Lines. The Mayor and Council preach to the 85,000 great Residents of O’ Fallon to “Shop In The “O,” however the Mayor and Council DO NOT practice what they preach. When out in about, the Mayor’s Wife has been seen purchasing and spending thousands of dollars in the City of St. Peters and especially at “Costco.” The Mayor and the City Council NEED to reach out and make a concerted effort to call, email, stop by, make known and inform O’ Fallon Businesses of “Request For Bids” and “Request For Proposals,” I shop in the “O” most of the time when ever possible. But the Mayor and the City Council have shown through real action that they shop outside of O’ Fallon, outside of St. Charles County and outside of the State of Missouri. When bids are under one (1) percent the Council needs to look at awarding bids to local businesses that pay taxes and revenue to the City Coffers that provide vital and important City Services and Public Safety efforts.
The Mayor and the City Council NEED to set the example of really “Shopping in the “O” in their own lives and the spending of the City Funds (Case in point, two (2) weeks ago the City Council voted to 1. Spend $205,024 for the purchase of eight (8) 2013 Ford Police Interceptor Utility AWD Vehicles from Joe Machens Ford in Columbia, Missouri with staff having to drive and pay overtime to retrieve and pick-up these vehicles. 2. The City Council voted to spend $371,601 for the purchase Fifthteen (15) Light and Medium Duty Trucks from Dave Sinclair Ford in St. Louis County when Marshall Ford is right here in O’ Fallon! 3. The City Council approved the spending of $22,350 to pay off the lease of two (2) unmarked undercover cars from Dave Sinclair Ford in St. Louis County when we have Ford Dealerships in O’ Fallon and St. Charles County The Mayor and City Council needs to practice what it preaches and purchase it in the “O” Has any one ever heard of the art of negotiations? AC Dienoff City Council Candidate Community and Public Advocate
Jim Pepper February 28, 2013 at 07:48 PM
It is always amazing when someone doesn't completely understand the processes used to purchase vehicles. First of all, Purchasing in the 'O' is preferable, but when we can get these vehicles at a greatly reduced price through a state bid, we save the taxpayers a great deal of money. ALL dealers are invited to bid and if those local ones choose not to, we can't force them. If those dealerships wish to get our business then they should bid. The MAIN question is, should we "Shop in the O" and pay a higher price or be fiscally responsible with tax dollars and get the lowest and best price? It is not the current policy typically to send staff to pick up vehicles especially on overtime. The City has no plans to send staff to Columbia/Jeff City to pick up vehicles. Negotiations begin with becoming a part of the process. State bids ARE competitive bids. Don't let the facts get in the way of a good story. - Mark Twain
Sscott February 28, 2013 at 09:23 PM
were a family that does shop in ofallon hate going any where out side it. were regular coustmers with lowes,schnucks bob evans crackle barrel dairy queen target texas roadhouse and great clips hair salon.we buy or tires at firestone love the dollar tree and thrift stores.have no small children but our greatgrand child is in daycare in ofallon.love the skate park we go watch them.not to count on office max an walmart.I just want a good fish place so we dont have to go into st peters. we do have something no ones matched yet.the safest place to live.the fish dinner is small compaired to that!
Sscott February 28, 2013 at 09:25 PM
was in the ofallon main street market place just today.
Ron Shaver February 28, 2013 at 09:40 PM
Jim, that is exactly why people need to choose the candidates that know what is going on in the city. I hope they choose carefully, especially in ward #1 .
Jim Frain February 28, 2013 at 09:48 PM
Wonderful comments Sscott on where and why you Shop in O'Fallon as much as possible.....You made me smile reading your comments, especially when you mentioned my friend Pete Gowran's O'Fallon Main Street Marketplace..I hope that you met Pete...
Thanks Mr. Shaver. I am always on top of the truth and standing up for citizens to make sure that our Tax Dollars are wisely spent; that there is always openness, full disclosure and transparency in municipal government serving all 85,000 Residents and not Special Interest. I know fully-100-percent what I am talking about and will always stand up for what is right and just. AC Dienoff City Council Candidate/Community and Public Advocate for the People! P.S. The United States Federal Code and Regulations of the T.S.A. require Ethics and following certain protocol, decorum and conduct of its employees and officials.
Jim Frain February 28, 2013 at 10:44 PM
Bobby, Why don't you tell us a little about your O'Fallon business. I know that many of us would like to know about your business and hopefully use your services. I also think that the O'Fallon Patch would be interested too...After all, keep it in the "O".
Ron Shaver February 28, 2013 at 10:50 PM
Arnie, that was not an endorsement, that is why I made the comment I did. You are obviously lacking in the qualities we need in ward #1. As shown by your childish acts of intimidation by your repeated mentions of T.S.A.. P.S. I would be careful with your past & current .." Threats" . Only on duty in uniform are correct. Otherwise ???
Mr. Shaver, NO threats what so ever. Your past experience of voter intimidation and harassing voters at the polls on Election Day is an annual occurrence and known throughout the Ward. “Voter Suffrage Rights” and Precinct Violations from you will not be tolerated any longer. You are a Federal Employee and will be upheld to standards of your position. You endorse the incumbents because they do you favors by appointing you to the Park's Board, giving you free sporting and event tickets and free access to the V.I.P. Tent at the Heritage and Freedom Fest. I call the facts what they are, clear, transparent and open. And for the Record Mr. Shaver I have impeccable qualities, excellent ethics, am honest and will not be shoved around by a known City Bully. I will always stand my ground and run a clean election on beliefs and principles that put people first over my own pockets.
Sscott March 01, 2013 at 02:13 AM
some need to take the comments to another board,were not electing anyone here. you need to reread the headlines. Jim watching the kids in that skate park,some even picked up a couple cans left on ground.finally they have there own spot.our shoping,our doctors or all in ofallon its a choice we make to not have to travel outside of our own city.spent my entire tax refund at lowes new fridge,new dishwasher.plaza tire on hwy k got good prices on tires right now replaced 2 back ones today.we even buy our lawnmower parts at Bills. for your question met mike many times ,he showed us the sign day before he had put up.gotten some good deals and nice things there. even if we dont buy we go look it changes all the time.suport your city and it will suport you back.wonderful schoool district.I watched my grandchild go threw and will watch my greatgrand child do.were not the safest city because we have great officers that may be one reason its because were all good to each other.were a caring city.the battle of the minds such as going on here,mud slinging behind words is whats wrong with any city.they need to respect the subject they comment on and take the cheap shots to each other else where. subject; burger king empty building and keeping it in the O.
Sscott March 01, 2013 at 02:17 AM
sorry owner pete at ofallon main street market not mike, my bad
Amen and Agreed Mr. Scott. But I will stand my ground and not allow a bully to run over our great and compassionate City that I love and poor my heart into to make our City a better to live! AC Dienoff
Jim Frain March 01, 2013 at 02:25 PM
You've got it right Sscott....The O'Fallon Patch is a great place to share the positive things that are going on around us. We live here beacause we love...we appreciate the special things of life like skate parks, and neat little shops to visit and shop in, nice celebrations, good neighbors, a friendly atmosphere and that is why we live here...You and I have been around a while Sscott and we are definitely "smelling the roses"....Have a good day....stay positive!....Thanks for reminding us that we live in a special place!


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