Burger King Holdings Inc. has filed a volley of lawsuits this month saying at least seven franchisees breached their contracts by not upgrading their cash-register systems in time.
The lawsuits are further straining an already acrimonious relationship between Burger King and some of its franchisees, a factor analysts have cited as having the potential to hurt sales and restrain stock growth. Some franchisees facing the suits have been outspoken critics of Burger King’s recent controversial measures, like its current $1 double cheeseburger promotion, a fact not lost on the operators.
“This is about getting even because we did not roll over on the dollar double cheeseburger,” said one franchisee named in a suit who declined to be named for fear of further retaliation. “This is about showing who the big boss is.”