Dairy Queen is facing a dilly of a problem — a rebellion against the revamping of restaurants by a growing number of mostly mom-and-pop franchise owners.
Claiming that DQ is forcing them to increase the size of restaurants or add table service under the threat of losing their franchises, owner associations with members in 10 states are now suing the chain.
Resistance to the Minneapolis-based corporation began in Michigan last month.
This month, franchisee associations with members in Arizona, West Virginia, Ohio, Virginia, Maryland, Pennsylvania, Kentucky, Missouri and Illinois filed suit to block the corporation’s plans.
The lawsuit pits entrepreneurs who mostly own one or two restaurants against International Dairy Queen and its corporate parent, Berkshire Hathaway Inc., the investment company of billionaire investor Warren Buffett.
“It’s the classic David vs. Goliath balance,” says Carmen Caruso, an attorney for the plaintiffs.
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