Hilary Russ

NEW YORK (Reuters] -Burger King’s parent firm said Thursday it could not close the 800 locations in Russia due to an independent operator who “refused to” do so.

Restaurant Brands International Inc (NYSE:) Inc claimed that in order to enforce the contracts it had with Alexander Kolobov its partner, it would require the assistance of Russia’s government. But, according to a letter sent to employees by David Shear the President, International of the company, “We know that won’t practically happen anytime soon.”

Kolobov stated in a statement that he doesn’t have the power or authority to determine whether restaurant operations should be suspended.

Shear’s lengthy letter and Kolobov’s reply highlight the difficulties facing some American fast-food companies as they attempt to end operations in Russia following Moscow’s invasion of Ukraine.

This exposes what could be a weakness in international franchising. It is the way that most American restaurants expand abroad: their relationships with independent operators.

April 8, Starbucks Corp (NASDAQ:). A wave of other corporations followed McDonald’s Corp.’s lead (NYSE:). They announced that Russia would be closed to all operations.

Starbucks, like Burger King does not operate the more than 100 locations.

It was not Burger King. But it did have a partner, the Kuwait-based Alshaya Group. They immediately closed its Starbucks locations in Russia to support their 2,000 employees.

Restaurant Brands was established in Russia over a decade ago by a joint venture partnership. It included Kolobov (who controls the day to day operations), Private Equity, Asset Management Firm Investment Capital Ukraine, as well as Kolobov (who manages private equity and asset management) and Russia’s VTB Bank.

Restaurant Brands began the process of selling its 15% share in the joint venture. Shear indicated that the company wants to act immediately. However, the agreement stipulates that the process will be slow.

Shear explained that “no legal clauses allow us unilaterally to change the contract, or for any partner to just walk away or reverse the whole agreement,” Shear said.

“Would you like all Burger King outlets in Russia to be immediately suspended? Yes. Can we enforce a suspension? He said. “No.”

Kolobov claimed he never held control over operations after the 2012 formation of the joint venture. Kolobov, who controls 30% of the partnership, said that he has never had control over operations since 2012 when the joint venture was formed. He also stated that all shareholders should consider the potential impact on the approximately 25,000 workers that the decision to suspend operations would have.