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Burger King sued over $1 burgers

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11.16.2009

Baack

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Burger King sued over $1 burgers

Quote:

Franchisees say the value-menu promotion is a money-losing deal.
Restaurants have been getting creative during the recession in an effort to entice customers into their stores, but Burger King's (BKC) latest move has landed the fast-food chain in court.

The National Franchise Association, a group that represents more than 80% of Burger King's U.S. franchise owners, is suing the company in U.S. District Court in Miami, charging that the company does not have the authority, under the franchisee agreement, to "dictate maximum pricing."

At issue is the $1 double cheeseburger. Burger King officially launched a nationwide $1 promotion for the burger in October and required all of its franchisees to participate. The problem was that franchisees had voted against the deal -- twice.

http://articles.moneycentral.msn.com...x?feat=1382976

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