Franchisees Sue International Dairy Queen

July 14, 2006 by Mark | 0 Comments

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Biz Journals :

A group of Dairy Queen franchisees are suing their corporate parent, International Dairy Queen Inc., claiming the Edina-based company is trying to force its mom-and-pop restaurant-owners out of business.

For years the two sides have battled over proposed changes to the traditional Dairy Queen restaurants that International Dairy Queen says will keep with the times and increase profits. Franchisees, however, say the new concepts are too expensive for small business owners who have been loyal Dairy Queen operators for years. On Wednesday the Dairy Queen Operators Association filed suit in Illinois seeking judgments on seven legal issues between the two groups. The association advises its 1,900 members on legal issues and business operations.

The suit asks the court to define the rights of Dairy Queen franchisees with regards to issues such as required store conversions or improvements, purchasing restrictions, making franchisees sell Dairy Queen ice cream cakes and all beef hot dogs of a certain brand and other conditions.

In Franchising in USA and/or Canada, News

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