Wendy's settles toaster lawsuit with franchisee

Wendy's settles toaster lawsuit with franchisee
Tags: Equipment & Supplies, Franchising & Growth, Legal Issues
September 27, 2011

Wendy's has settled a lawsuit filed this summer against its largest franchise group, WendPartners. Terms of the settlement were not disclosed.

The suit was brought forth by the chain after the franchise group balked at installing new toaster ovens needed to roll out the chain's new Dave's Hot 'n Juicy burgers, according to the Columbus Dispatch.

As part of the agreement, WendPartners franchisees will add the equipment, which is needed to toast the hamburger buns.

The breach of contract suit was filed in July against the franchisee, which operates 329 units in 20 states. Wendy's argued that introducing the new hamburgers without the franchise group's participation would undermine the rollout.