FOR IMMEDIATE RELEASE
For Information Contact: Laise Lowachee
Federal Judge Sustains the Right of Burger King Corporation to Require Its Franchisees to Participate in the Value Menu Program
MIAMI, FL – JUNE 11, 2008 – U.S. District Court Judge Marcia Cooke has sustained the right of Burger King Corporation to require its franchisees to participate in the Burger King Value Menu Program. Burger King Corporation sued a New York franchisee, E-Z Eating Corp., after the franchisee abandoned two of its Manhattan restaurants. E-Z Eating counter-claimed charging that Burger King Corporation breached its franchise agreement by requiring its participation in the program, despite the high cost of rent and labor in Manhattan. Judge Cooke entered summary judgment in favor of Burger King Corporation and held that the franchisor has the contractual right to require participation in the Value Menu Program. The amount of damages due to Burger King Corporation remains to be determined by the court.
According to Michael D. Joblove, counsel to Burger King in the case – “An independent financial analysis revealed that the Value Menu actually increased E-Z Eating’s profits. Additionally, the franchisee had the right to seek an exception to the Value Menu Program, but failed to do so.”
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