{"id":736,"date":"2010-11-28T23:18:46","date_gmt":"2010-11-28T23:18:46","guid":{"rendered":"https:\/\/expandsmtest.com\/franchiseking\/burger-king-franchisee-lawsuit-fails\/"},"modified":"2015-02-17T21:16:47","modified_gmt":"2015-02-17T21:16:47","slug":"burger-king-franchisee-lawsuit-fails","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/burger-king-franchisee-lawsuit-fails","title":{"rendered":"Burger King Franchisee Lawsuit Fails"},"content":{"rendered":"

\"BurgerKing_energieeffizientes_Restaurant_70\"<\/a><\/p>\n


\nIt’s about total revenue, not just a loss-leader.<\/strong> That’s the lesson that propective franchise owners of any franchise concept need to learn. It’s just math. Forget the lawyers<\/strong><\/a>.<\/p>\n

How much money do you think your local grocery store makes on 2-24 packs of Coke<\/strong><\/span> or Pepsi<\/span><\/strong>, when they sell them to you for $9.00?<\/p>\n

Answer;<\/strong> they lose money. (Or break even.)<\/em> They’re banking on the fact that you’re probably there for more than just beverages. You’ll buy some higher-profit items, and the store will do just fine.<\/p>\n

If you are a franchisee of a Burger King, and you’re being forced to sell double cheeseburgers for $1 each,<\/strong> do you think that your customers will be buying a beverage, and\/or french fries to go with their dollar cheesburger? Do you think that there’s some profit in beverages? Or in french fries?<\/p>\n

That’s why the spring-summer lawsuit by the Burger King National Franchisee Association lost. In his ruling, Judge K. Michael Moore<\/strong> said, “to sell one item for a loss in order to lure customers is a common business practice, not a sign that Burger King acted in bad faith. Even if the strategy was “ultimately unsuccessful,” that is not enough.<\/em> Read more.<\/strong><\/p>\n

The folks at Fox Business News<\/strong><\/a> asked me about the Burger King lawsuit, earlier this year.<\/p>\n

What do you think? Would you sell a product that loses money in order to get folks into your place of business to buy other high profit items?<\/p>\n

Apply For A Business Loan Here<\/strong><\/a><\/p>\n