Burger King Settles With Black Franchisee

Burger King Corp. and a franchisee, African-American businessman La-Van Hawkins, said they agreed to settle their legal dispute that led to black leaders launching a U.S. boycott against the No. 2 fast-food company. Hawkins had claimed in his $1.9-billion lawsuit filed in April that Burger King had not lived up to a 1996 agreement to help him open as many as 225 hamburger outlets in U.S. inner-city neighborhoods. Miami-based Burger King, a unit of Britain’s Diageo, then countersued, saying Hawkins owed $8 million in back fees. Under the deal, the company will buy Hawkins’ 23 Burger King restaurants in the Chicago, Detroit, Baltimore, Washington and Atlanta areas. Barry Blum, Burger King’s chief legal counsel, said the company expects to retain ownership of the five Atlanta restaurants and plans to re-franchise the Chicago, Washington, Detroit and Baltimore locations to existing franchisees. Terms of the settlement were not disclosed.