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Burger King cancels German franchise license after wage-theft allegations

November 19, 2014

Burger King has canceled 89 of its German franchises after a TV report aired in May alleging wage theft and food expiration incidents.

The restaurants are franchised by Yi-Ko Holding. Burger King canceled its license effective immediately. Among the allegations from the TV investigation:

• Employees were "forced" to change sell-by dates on food;
• Some restaurants lacked necessary appliances, such as dishwashers;
• Overtime and benefit pay withheld.

In a statement to Europe Online Magazine, Burger King said the decision was difficult but necessary "after Yi-Ko repeatedly failed to apply contractually agreed working conditions to its 3,000 restaurant staff."

There are 700 Burger King restaurants in Germany.