Burger King Franchisees Can’t Have It Their Way

Wall Street Journal:

The price of a double cheeseburger is generating a lot of heat among Burger King franchisees.

In an ongoing dispute that could affect how the nation’s hundreds of franchise organizations set prices, the burger chain is insisting that its two beef-patty sandwich be sold for no more than $1—in line with other items on its “Value Menu.”

But the company’s franchisees claim that at that price, they lose money.

Although the loss on each sandwich may only be a few cents, a typical restaurant might sell several hundred of the burgers each week.

Most franchisees are following orders for now, but the National Franchisee Association for Burger King, which represents restaurant operators across the U.S., filed a lawsuit last fall in U.S. District Court in Florida, asserting that the company’s franchise agreements don’t allow it to dictate prices. Read more.

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