Tellingly, it was the second lawsuit the franchisee's national association filed against BK last year -- the first sought to retain soda-purchase rebates for franchisees that BK wanted to divert to its national advertising fund. BK announced that along with dropping the compulsory dollar double-cheese, it would also cease pursuing the soda rebates.
There seems to be a troubling disconnect here between Burger King headquarters and the franchisees out in the trenches who are trying to make a buck in a tough economy. Hopefully, these gaffes will lead to headquarters brass getting front-line franchisees more in the loop as they develop initiatives. Otherwise, BK could easily face further franchisee revolts. One development this week that may ease some of the tension: BK unveiled a new premium burger line, Steakhouse XT, which will offer franchisees more of a profit-margin opportunity with prices from $3.99 to $4.49. Image via Flickr user keepwaddling1, CC 2.0