In a move to try to emulate McDonald’s (MCD) success with its Dollar Menu, Burger King (BKC) rolled out a $1 double cheeseburger to go head-to-head with the Golden Arches over cheap eats.
Except there was one problem — franchisees who owned BK stores bristled at the deal, saying it squeezed margins way too thin and hurt their bottom line. The disagreement over the BK double cheeseburger resulted in a lawsuit late last year that went all the way to a federal court in Miami.
But at last, this food fight is nearly finished after a judge ruled recently that Burger King management has the right to dictate value-meal pricing to franchisees. That means the $1 BK menu item should stick around.
“There is simply no question that Burger King Corp. had the power and authority under the Franchise Agreement to impose the Value Menu on its franchisees,” wrote Judge K. Michael Moore in his ruling.
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