Burger King terminates Ibersol contract for brand development in Portugal
Ibersol noted there was not a proper assessment of the limitations faced by companies due to the pandemic.
Ibersol SGPS SA, a Portugal-based firm mainly engaged in the operation of restaurants, said that BK Portugal decided to terminate the Burger King brand development contract in Portugal, which invoked the default of an obligation to open two restaurants and refurbish three others in 2021.
Citing a regulatory filing by Ibersol, Bloomberg first reported that the fast food brand also ended talks to renegotiate the development contract, whilst it remains available to analyze proposals for the construction of new restaurants.
The development contract allowed the Portuguese company to build 27 new restaurants during 2022 and 2023.
Ibersol noted there was not a proper assessment of the limitations faced by companies due to the pandemic, leading to “significant” delays in getting permits for projects.
