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Burger King Franchisees Dismiss Lawsuit Over $1 Cheeseburger
By dropping a two-year lawsuit, Burger King franchisees have it their way: They get more power over Value Meal pricing.
Posted 4/ 18 11 at 7:30 PM | News, Money, Legal Issues, Consumer Products & Services, Food & Beverage
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A lengthy legal dispute between Burger King and its franchisees about a $1 double cheeseburger promotion is being dismissed, the company announced Monday. The lawsuit, filed in 2009 by the National Franchisee Association on behalf of Burger King franchisees, argued that the company's decision to price the double cheeseburger at $1 on its Value Menu hurt franchisee profits.Based on a new agreement, franchisees will now have more input on both the pricing of Value Menu items and the duration of special deals.
The agreement is part of an attempt by Burger King's new private-equity owners, 3G Capital, to listen to and address the concerns of franchisees. "We saw this as an opportunity to resolve our differences and move forward," Steve Wilborg, Burger King's president of North America, told Reuters. "Our system is 90 percent franchised and it's important for our franchisees to win."
While value promotions are often sure-fire traffic-boosters, many of these items are priced below cost -- an issue for many of the 7,550 Burger King restaurants in the United States and Canada, who are already concerned with the rising costs of food such as beef, cheese and wheat.
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Comments (Page 1 of 1)
Burger King has the worst food around anyway....
All You have to do is put a circle "R" ® after your name to self register in the US. By holding the alt key and entering 0174 The symbol will appear. Wes
I have one of he best names.It is documented and trade marked in Utah only.Can someone in another part of the country infrenge on my rights.Leonard
That would explain why they taste like soy burgers instead of the flame broiled beef we have all come to know and love .
3G changed the BK burgers. They look the same, but cheaper buns, cheaper meat, less lettuce, etc. BK cannot fool the American taste.
I'm sure that 3G's franchisee agreements specify that they get a cut of the REVENUE, not gross profit. So, it's in 3G's interest to maximize REVENUE. The poor franchisee (supposedly an investor and a partner) is forced to sell burgers at a loss (or minimal profit), add staff for increased traffic, and buy more Burger King licensed product, bags, wrappers, etc. from a 3G vendor (3G probably gets a cut on that, too). So, 3G pockets the profits while the franchisees pay the higher bills. And 3G telling a franchisee what to charge is a violation of antitrust law; that's why ads say "at participating locations". But the franchisee loses goodwill (part of the value of his investment) if he doesn't participate. The franchisee also must pay the cost of their lawyers to stand up for their rights as independent businessmen and investors, PLUS the costs of 3G's pricier lawyers who are not acting in the franchisee's best interest. Stories like this also devalue the Burger King franchise. So, the franchisees are screwed up-and-down in-and-out and diagonally no matter what. Enjoy your double cheeseburger.
I won't eat at a Fast Food JOINT. If I want a Good Burger I eat in a good local Resturant where it is made as you wait. Fast Food food is awful and bad for you.