• Ad Age, Friday, November 13, 2009 10:40 AM

The National Franchise Association filed suit in Miami yesterday, charging that Burger King doesn't have the right to set "maximum prices" for certain menu items, Emily Bryson York reports. The operators say that they cannot afford the dollar double-cheeseburger deal that BK is promoting nationwide.

"Our franchisee community is united in protecting our entrepreneurial rights as independent business owners, but we are also disappointed that we need to take legal action against our franchisor," association chairman William Harloe, Jr. said in a statement. Burger King said that it believes that the suit is "without merit."

The NFA represents about 83% of the BK-franchised restaurants in the U.S., or 5,200 stores. Getting to the heart of the issue, one franchisor interviewed by Bryson York said that although traffic was up at his store, thanks to the promotion, his gross profit margin is lower.

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