
Last Tuesday, The National Franchise Association that represents more than 80% of Burger King’s US franchisers sued the company at the U.S. District Court in Southern Florida. This is after the sale of the quarter pounder goes nationwide after being rejected twice by its franchisers. Dan Fitzpatrick, the spokesman of the association claimed that they are losing $.10 on every double cheeseburger sold.
The suing association thru their spokesman claimed that every double cheeseburger costs $1.10. This includes about 55 cents for the meat, bun, cheese, and toppings; 45 cents for rent, royalties, and worker wages. Pennsylvania franchise owner Steve Lewis said in a statement that "The current management team has disregarded rights that Burger King franchisees have always had."
On the other hand, Burger King’s spokeswoman Denise Wilson said that they believe that the litigation is "without merit." They recall that earlier appeals this year in courts ruled to their side. The ruling was that BK had the right to require franchisers to join in any of its value menu promotions.
The double cheeseburger sale is expected to increase visits by as much as 20% but does not ensure better sales since the order value will fall. As of Thursday trading, BK’s shares dropped 18 cents or 1 percent. The Miami burger company remains to be US’s second largest burger company.






