Mediapost.com:
Burger King told franchisees last month that, starting in February 2010, it wants 40% of millions of dollars in annual rebates that franchisees get from soda companies to apply toward national advertising.
Now the National Franchisee Association has filed a class action suit in U.S. District Court, Southern District of California, against BK, Coca-Cola and Dr Pepper Snapple Group, arguing that the payments to 850 franchisees cannot be eliminated or reduced without their consent, Elaine Walker reports.
The “restaurant operating funds” are based on the amount of soft drink syrup the operators purchase. The money has been used to offset the costs of purchasing, leasing and repairing the soda machines, as well as local marketing initiatives.