A glance at the headlines of late might convince QSR franchise shoppers that the industry is in the middle of a litigation war. Just this year alone, there have been more than a dozen suits filed against franchisors of major brands.
In February, a woman filed against McDonald’s claiming the company falsely advertised its french fries were gluten- and milk-free. Last month, a woman made a case against Wendy’s for the chili being too hot. And who can forget about the Center for Science in the Public Interest suing Kentucky Fried Chicken for trans-fats?In addition to consumer-oriented lawsuits, franchisees are suing franchisors.
Last week, the North American Association of Subway Franchisees Inc. filed suit against Doctor’s Associates Inc. (DAI), the franchisor of the privately held quick-service restaurant chain. The plaintiffs claim Subway did not follow the franchisor-franchisee advertising agreement. That lawsuit comes on the heels of another filed against DAI June 26 by the Subway Franchisee Advertising Fund Trust (SFAFT).
The week prior, Dairy Queen franchisees filed a suit claiming the parent company is trying to force its franchisees out of business. The franchisees believe the proposed upgrades to the traditional Dairy Queen restaurants are too expensive for small business owners who have been loyal Dairy Queen operators for years.
And then there’s the suit against Quiznos. The Denver-based sub chain is facing a pair of proposed class-actions over delays in location approvals for its franchisees.
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