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Burger King franchisee pricing class action suit goes to court
May 6, 2010
The class action lawsuit filed by Burger King franchisees over the company's movement of the double cheeseburger to the value menu was heard in Miami federal court Thursday, The Miami Herald reports. Burger King asked that the suit be dismissed because a ruling last year by the U.S. Court of Appeals affirmed the company's right to impose the value menu on its franchisees, but the case was not dismissed Thursday.
From the story:
Burger King franchisees have argued that the company only has the right to recommend pricing and it is the independent franchisees who set their own prices. Franchisees had twice voted down the $1 double cheeseburger before Burger King insisted on introducing it nationally.Burger King franchisees in March withdrew a separate class action lawsuit filed against the company for its attempt last year to divert operators' soda rebates to the national marketing fund. The company reached a new agreement with franchisees on how to increase the brand's national media spend.
Burger King's relationship with its franchisees has continued to improve, with franchisees recently approving the extension of the $3.99 introductory price for the Steakhouse XT and a $1 Icee special.
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