Burger King, a popular food chain is being sued by franchise owners for selling its double cheese burger for $1. The complainants say they are losing at least 10 cents for every burger that they sell.
The company that makes the second most popular and best selling hamburger in the United States is being sued for selling its double cheese burger for $1.
The National Franchise Association, a group that represents majority of Burger Kin franchise owners, claimed that they are losing at least ten cents every time they sell the low-priced double cheese burger,
Yahoo news reports:
While costs vary by location, the $1 double cheeseburger typically costs franchisees at least $1.10, said Dan Fitzpatrick, a Burger King franchisee from South Bend, Ind. who is a spokesman for the association. That includes about 55 cents for the cost of the meat, bun, cheese and toppings. The remainder typically covers expenses such as rent, royalties and worker wages.
Denise Wilson, spokesperson of the Burger King company says the the lawsuit is without merit as shown in a recent court ruling stating that the company has the right to require franchise owners to participate in the company's value menu promotions.
The Burger King value menu promotions is aimed at bringing back customers who are spending less to Burger King outlets to dine or eat out because of the present economic downturn.
Burger King, often abbreviated as BK, is a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-Dade County, Florida, United States.
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