Limited management control
Approximately 90% of Burger King restaurants were franchised. This means a lower capital requirements but it also meant Burger King had limited control over franchisees. The limited control by Burger King management can cause distortion in relaying the right management style as well as adhering its vision and mission of the company to the franchisees. For example, mismanagement by franchisees was they disregard their aging restaurant. And this will led to the downgrade of its brand name.
5. Reliance of franchisees as revenue source
According to management, the company generated revenues from three sources. Two of them are from the franchisees. This posed as a threat to the company as revenue will be lost if there are declines in franchisees.
Based on the listed problems above, we can conclude that the main problem is poor leadership and management and loss of brand vision that leads to weak marketing strategies, wrong target market and lack of innovations.