Franchises may rely on their parent companies for their business model, but as a recent case dealing with a major food franchise shows, they can still have voices of their own.
Burger King and its franchisees recently settled a lawsuit with its National Franchisee Association, which represents more than 90 percent of all U.S. franchises, resource Blue Maumau reported. The dispute was over the rebates restaurants get from soft drink suppliers - totals of which can be in the millions. The company had intended to begin taking 40 percent of the soda rebate money, but announced that it would not follow through on the plan.
The Miami Herald quoted a NFA statement by Chairman Bill Harloe, who called the result a "testament to the fact that, when we come together as franchisees to protect our mutual business interests, we can and will prevail."
Burger King is working to improve relations with franchisees, as well as public perceptions of the fast food giant. Last year, controversy arose over a promotion for a $1 double cheeseburger - franchisees claimed the burger cost more than a dollar to make.



