Money fight shuts area fast food restaurants

Published 12:00 am Tuesday, October 17, 2000

Burger King regulars took their Monday morning coffee break elsewhere after Ironton’s and four other restaurant locations shut their doors this weekend.

Tuesday, October 17, 2000

Burger King regulars took their Monday morning coffee break elsewhere after Ironton’s and four other restaurant locations shut their doors this weekend.

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"Burger King and I had a financial disagreement over certain things and they were within their legal rights to force me to close," said franchise owner Ron Belle.

Under Ashland Equities Inc., Belle operated restaurants in five locations – Ironton, on Winchester Avenue and 13th Street in Ashland, U.S. 23 in Russell, Ky., and in Grayson, Ky. – according to courthouse records.

All five restaurants closed at the end of business Friday.

Burger King Corp. officials in Florida said in prepared statements that a franchise matter was in litigation but hoped to reopen the restaurants.

The local company had difficulty affording the corporate franchise requirements to refurbish the businesses and sales had dropped off, Belle said.

Belle said he worked with corporate officials until the last minute but could not resolve the matter.

"We tried to stay open and were in the process of selling," he said.

Belle had found a group of individuals to buy the chain of restaurants under the franchise rules but Burger King turned down the agreement, he said.

Belle said he wanted the restaurants to remain open, but "they felt it was more important to take the legal position to close them."

Burger King’s Ironton location had been in operation for 20 years, a relationship Belle said he is sorry to lose.

"I feel sorry for my employees and embarrassed," he said.

Some employees had worked for Burger King for 14 to 15 years, Belle said.

"In Ironton, I’ve seen a lot of people come and go, both employees and customers," he said.

Burger King had less than 25 full-time equivalent employees and were not subject to the WARN Act notification of job loss, Ironton Mayor Bob Cleary said.

It was unclear Monday what impact the closure would have on the city, Cleary said.