Yum! Brands‘ Kentucky Fried Chicken unit, embroiled in a lawsuit with franchisees over grilled versus crispy fare, doesn’t control all advertising decisions, a judge has decided.
The KFC National Council and Advertising Cooperative, the designer of marketing programs for the world’s most popular chicken restaurant chain, alleged in a January complaint in Delaware Chancery Court that KFC President Roger Eaton wrongly sought to dominate ads, seeking to promote grilled chicken over the chain’s more traditional fried product.
Judge Leo Strine Jr agreed today with the franchisees’ council that it “has the right to engage in a substantive planning, review and approval process” and that its position “is the more reasonable way” to interpret the contract. In his written opinion, Strine also said KFC Corp isn’t obligated to adopt ads that “may be harmful to the KFC brand.” Read more.