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Restaurant Franchisee Rights and Legal Issues: Negative Profits In a Down Economy Caused by Sales Initiated by Franchisors

A lawsuit by Florida Burger King franchisees was filed on Tuesday against the fast food chain franchise. 

The fast food franchisees in Florida filed the lawsuit because of the demand, which they believe is unreasonable, being placed on them by  the franchisors to sell food at a sales price that is lower than what they claim it is to make the product that they are selling. 

The Burger King franchisees are claiming that they are being asked to sell double cheeseburgers for $1.00 but that the cost to make the burger is costing them $1.10 therefore they are saying that they are losing ten cents everytime someone purchases the double cheeseburger of off the value menu. 

Franchisees in a down economy are deciding that something needs to be done about the loss in profits due to a sale that is being impossed on them by the franchisor. 

Franchisors responded to questions asked by Fox Business reporters by saying that the promotion was designed to draw in customers to the fast food franchise company in a down economy - something that they say has been lacking recently because families do not want to spend money on eating out with the economy the way it is. 

Franchisees do not want to suffer losses slowly each time a double cheeseburger is purchased and want to make sure that they are able to continue to be profitable in a down economy by not just driving customers to their business but by making profit off of those customers.

Charles N. Internicola, Esq., a partner at the Staten Island law firm of Decker Decker Dito & Internicola, LLP., is an experienced business and franchise lawyer who represents individuals and experienced business owners in business transactions and business litigation in Staten Island, New York City and New Jersey. Charles is the author of the book "An Entrepreneurs Guide to Purchasing a Business" and he is the editor of the New York Franchise Law Blog.  If you are involved in a business transaction, purchasing or selling a business, establishing a franchise system or involved in a business dispute, contact Charles Internicola to discuss the specialized legal services that he provides to his clients.

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