Franchise Operators Want A ‘Bill Of Rights’

Philadelphia Inquirer:

Burger King’s 2009 campaign selling quarter-pound, double cheeseburgers for $1 sold thousands of discounted sandwiches and created immeasurable publicity for the corporation.

It also brought a lawsuit filed on behalf of nearly 80 percent of the company’s franchisees, who claimed the price cuts were more than they could afford based on what franchisees were paying for food.

Chris Schmitz, board member for the American Association of Franchises and Dealers and president of the Meineke Dealers Association, said franchisees were often contractually obligated to use specific vendors for food and supplies, even when it might be more cost-effective to shop around. When the time comes to sell beef and vegetables for less than a buck, individual franchises are the ones that eat the losses.

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