The suit, filed against Burger King by the National Franchise Association, comes after Burger King required all franchisees to sell its double cheeseburger for $1. The suit, which represents 80 percent of all Burger King franchise owners in America, alleges that the Whopper chain doesn't have the power to set price ceilings on choice menu items.
The saga started back in July when we reported franchisees turned down an initial plan to sell the double cheeseburgers for a buck due to worries that another $1 offering could cause more customers to trade down from higher-priced menu items.
This forced the chain to devise a mail-out coupon campaign for $1 double cheeseburgers to nearly 80 million households nationwide.
Then in September, the King overruled the franchisees by nixing the coupon campaign and forcing the $1 promotion to be put on the in-store menu anyway. Franchise owners complain that they've been selling the burgers at a loss.
"BKC [Burger King Corp.] believes the lawsuit is without merit," Burger King Corp. issued in a statement to Slashfood. "The U.S. Court of Appeals for the Eleventh Circuit decided earlier this year that BKC has the contractual right to require franchisee participation in its BK Value Menu program."
[Via Associated Press]