Diageo Rejects Proposal to Sell Burger King Chain

Britain’s Diageo, the world’s largest liquor company, turned down an offer to sell its Burger King chain to a group of franchisees.

Diageo told the franchisees that the brand is not for sale and that it expects to be able to expand the restaurant business in the U.S. and in other countries, according to Diageo’s Burger King Corp. division.

Burger King is the world’s second-largest hamburger chain after McDonald’s Corp.

The purchase proposal came from the National Franchisee Assn., a group representing Burger King franchise owners, Miami-based Burger King said. The NFA is holding a convention in Orlando, Fla., and was not available for comment.

Dow Jones earlier reported that the franchisees had hired a team of lawyers, public relations specialists and accountants to help make a proposal to Diageo. The group is unhappy with Diageo’s management of the brand and its plan to raise royalty fees, the news service said.