MIAMI (CN) – A group representing Burger King franchisees has filed a class action against the restaurant over its $1 double cheeseburger promotion. The National Franchise Association says in Federal Court that the promo is costing franchisees money, and that Burger King doesn’t have the right to dictate prices.
The group, which represents about 75 percent of the nation’s Burger King franchisees, says the $1 promotion forces Burger King owners to sell the burger at a 10-cent loss.
The group seeks a declaration that franchise agreements do not require franchisees to comply with the company’s pricing.
A commercial for the $1 cheeseburgers has been broadcast repeatedly in past weeks during NFL games.
The franchisees are represented by Norman Smith with Solomon Ward.