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Judge Dismisses Burger King Franchisee Lawsuit Over Pricing Limits By Chris Morran on November 24,


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Judge Dismisses Burger King Franchisee Lawsuit Over Pri... - 11/27/2010 4:36:15 AM   
pahunkboy


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Status: offline 		Judge Dismisses Burger King Franchisee Lawsuit Over Pricing Limits
By Chris Morran on November 24, 2010 4:45 PM   27 Comments A year ago, a group representing around 75% of Burger King franchisees filed a lawsuit against BK corporate, claiming that they were losing money on some products because they were not allowed to sell them for more than one dollar. And now a judge in Florida has dismissed the lawsuit, saying the King was within his rights. More »
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RE: Judge Dismisses Burger King Franchisee Lawsuit Over... - 11/27/2010 6:16:05 AM   
DarkSteven


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Status: offline 		So they sold their soul to BK and ceded all control to BK, and now they're unhappy about it.

Franchises are NOT a ticket to independence.


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RE: Judge Dismisses Burger King Franchisee Lawsuit Over... - 11/27/2010 6:54:33 AM   
pahunkboy


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quote:

ORIGINAL: DarkSteven

So they sold their soul to BK and ceded all control to BK, and now they're unhappy about it.

Franchises are NOT a ticket to independence.



Interesting it is 75%.

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RE: Judge Dismisses Burger King Franchisee Lawsuit Over... - 11/27/2010 7:08:22 AM   
MrRodgers


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Status: offline 		They had a bad lawyer. That is price fixing...pure and simple. Don't know on what basis this judge dismissed it. Other wholesalers and manufactures have lost lawsuits over these price dictates. All they can do is withhold the product. The BK franchises should refuse to sell the burgers as no partner can force another to lose money on any product. If the corp. then withholds other products, it only hurts itself.

This should be appealed asap.

< Message edited by MrRodgers -- 11/27/2010 7:11:47 AM >

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RE: Judge Dismisses Burger King Franchisee Lawsuit Over... - 11/27/2010 7:21:01 AM   
pahunkboy


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Status: offline 		So much for "deflation".

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RE: Judge Dismisses Burger King Franchisee Lawsuit Over... - 11/27/2010 8:01:27 AM   
DarkSteven


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quote:

ORIGINAL: MrRodgers

They had a bad lawyer. That is price fixing...pure and simple. Don't know on what basis this judge dismissed it. Other wholesalers and manufactures have lost lawsuits over these price dictates. All they can do is withhold the product. The BK franchises should refuse to sell the burgers as no partner can force another to lose money on any product. If the corp. then withholds other products, it only hurts itself.

This should be appealed asap.


Price fixing is when competitors collude secretly to keep prices high, not low.  This does not involve competitors, nor secrecy, nor prices kept high.

Under franchise agreements, the franchisees agree to follow the dictates of the franchisor regarding how to prepare food, how to hire, etc., to a large degree, and agree to abide by national marketing campaigns.  I don't see how they have a case.

If they withhold hamburgers, who the hell will shop at their store?  It may hurt the corporate office somewhat, but it will absolutely kill the franchisees.

< Message edited by DarkSteven -- 11/27/2010 8:09:42 AM >

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RE: Judge Dismisses Burger King Franchisee Lawsuit Over... - 11/27/2010 8:03:00 AM   
DomKen


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quote:

ORIGINAL: MrRodgers

They had a bad lawyer. That is price fixing...pure and simple. Don't know on what basis this judge dismissed it. Other wholesalers and manufactures have lost lawsuits over these price dictates. All they can do is withhold the product. The BK franchises should refuse to sell the burgers as no partner can force another to lose money on any product. If the corp. then withholds other products, it only hurts itself.

This should be appealed asap.

Franchise agrements are contracts. If the contract says the parent can set menu items and prices then it can.

(in reply to MrRodgers)
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RE: Judge Dismisses Burger King Franchisee Lawsuit Over... - 11/27/2010 10:50:27 AM   
Termyn8or


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The sub shop (not that one) across the street from work used to be a Subway. Not any more. They still sell subs, but of course the sign has been changed. Contracts are terminable and usually expire from time to time if not renewed.

So those Burger Kings can just change their name to Burger Fling or something. Then they control the menu and prices, but give up on that national advertising budget and whatever other considerations they were getting.

You can contract for just about anything, even servitude under certain circumstances. Paid performers, in a sense do just that. Under a contract they can force you to paint the building pink (which has probably happened somewhere). If you don't like it, don't sign.

That 75% has options. First of all if they have the resources to sue, just change lawyers and form their own franchise network.

CHING !

T

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RE: Judge Dismisses Burger King Franchisee Lawsuit Over... - 11/27/2010 12:37:35 PM   
thornhappy


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quote:

ORIGINAL: MrRodgers
They had a bad lawyer. That is price fixing...pure and simple. Don't know on what basis this judge dismissed it. Other wholesalers and manufactures have lost lawsuits over these price dictates. All they can do is withhold the product. The BK franchises should refuse to sell the burgers as no partner can force another to lose money on any product. If the corp. then withholds other products, it only hurts itself.

This should be appealed asap.

This is an old, old, story with franchises.  It's happened with Domino's, Little Ceasar's, and Subway among others.

(in reply to MrRodgers)
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RE: Judge Dismisses Burger King Franchisee Lawsuit Over... - 11/27/2010 12:46:46 PM   
angelikaJ


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quote:

ORIGINAL: pahunkboy

Judge Dismisses Burger King Franchisee Lawsuit Over Pricing Limits
By Chris Morran on November 24, 2010 4:45 PM   27 Comments A year ago, a group representing around 75% of Burger King franchisees filed a lawsuit against BK corporate, claiming that they were losing money on some products because they were not allowed to sell them for more than one dollar. And now a judge in Florida has dismissed the lawsuit, saying the King was within his rights. More »


They might have lost money on the burgers, that is true, but most people who buy burgers also either order fries and/or a drink to go with them. There is a huge profit on both of those.

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RE: Judge Dismisses Burger King Franchisee Lawsuit Over... - 11/27/2010 12:46:58 PM   
MrKicia


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quote:

ORIGINAL: Termyn8or

FR

The sub shop (not that one) across the street from work used to be a Subway. Not any more. They still sell subs, but of course the sign has been changed. Contracts are terminable and usually expire from time to time if not renewed.

So those Burger Kings can just change their name to Burger Fling or something. Then they control the menu and prices, but give up on that national advertising budget and whatever other considerations they were getting.

You can contract for just about anything, even servitude under certain circumstances. Paid performers, in a sense do just that. Under a contract they can force you to paint the building pink (which has probably happened somewhere). If you don't like it, don't sign.

That 75% has options. First of all if they have the resources to sue, just change lawyers and form their own franchise network.

CHING !

T


Usually the bigger franchises owns the property and the building.  So if BK corporate owns the property and building and the franchisee doesnt renew the contract, I dont think the franchisee gets to keep the business and change the name.  Its still going to be a BK but with a NEW franchisee.

(in reply to Termyn8or)
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RE: Judge Dismisses Burger King Franchisee Lawsuit Over... - 11/27/2010 2:30:14 PM   
Termyn8or


Posts: 18681
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Status: offline 		"Usually the bigger franchises owns the property and the building."

Then they need to get their own buildings. If so, it's in the contract of course, unless it amortizes somehow. I'm surprised BK corporate didn't just raise the price or somehow lower the cost. People will eat anything.

The whole issue reveals that the franchise holders have no conception of the idea of "loss leaders".

Strange thing this franchise thing. It seems so attractive, people mortgage everything to pay the fees and costs thinking they are going to get rich(er). Then some have achieved market saturation. McD's, BK, Georgio, Dominos, you can't walk a country mile and not see one. Yet they are still sought after.

Really, if I wanted to open a restaurant the whole operation would be unique by design. Even people who'll eat anything like something different. Personally I think in this economic environment, being an independent is the way to go. I would completely sidestep the competition and even myself. That means a new menu every week.

The gives and takes of a franchised operation are obviously not for me. The people who purchase these franchises are not restauranteurs, they are simple businessmen. The costs of acquiring and maintaining the business is all numbers. If they had the balls and the creativity to open their own independent business, many of them would've done so. Well there is a fair amount of ambition required.

T

(in reply to MrKicia)
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RE: Judge Dismisses Burger King Franchisee Lawsuit Over... - 11/27/2010 3:53:04 PM   
MrKicia


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quote:

ORIGINAL: Termyn8or

Strange thing this franchise thing. It seems so attractive, people mortgage everything to pay the fees and costs thinking they are going to get rich(er). Then some have achieved market saturation. McD's, BK, Georgio, Dominos, you can't walk a country mile and not see one. Yet they are still sought after.
T


Heard from a man that owned quite a few MickyD's, said he didnt start making money until the THIRD one.  No thanks.

(in reply to Termyn8or)
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