October 20, 2005
Burger King Corporation Reported To Have Severed Ties With the NFA
Two months after Burger King's National Franchise Association ("NFA") filed suit against McDonald's, Burger King appears to have severed relations with the franchisee organization. According to one news source, Burger King claims that although it is "clearly pro-NFA," the organization has failed to publicly back certain of the company's marketing campaigns and promotional initiatives. The source speculates that the rift between the company and the NFA may also be connected to Burger King's opposition to the NFA's lawsuit against McDonald's, which the NFA later withdrew. The NFA, which is believed to represent approximately 90% of U.S. Burger King franchisees, alleged in its lawsuit that McDonald's engaged in unfair competition through rigged promotional games, which ultimately led to convictions for employees of McDonald's advertising agency. McDonald's was never implicated in any problems with the promotions. Notwithstanding that, the NFA sued McDonald's, alleging that Burger King franchises lost customers as a result of the promotion.
Posted by franchiselawblog at October 20, 2005 01:28 PM