SOUTH FLORIDA -- Several Burger King franchisees are suing the corporation over its $1 double cheeseburger promotion.
The National Franchise Association, a group that represents more than 80 percent of Burger King's U.S. franchise owners, says restaurant owners are losing at least 10-cents a burger by not being able to set their own prices.
The lawsuit was filed Tuesday in U.S. District Court in Southern Florida.
The burger itself costs the restaurant about 55 cents. That covers the meat, bun, cheese and toppings. The remainder typically covers expenses such as rent, royalties and worker wages.
After testing the $1 deal in markets across the country, the discounted burger went on sale nationwide last month even though franchise owners, who operate 90 percent of the company's 12,000 locations, twice rejected the product because of its expense.
An appeals court ruling this year stated the company had a right to require franchise owners to participate in its value menu promotions.
Restaurants, especially fast-food chains, have been slashing menu prices because of the poor economy. Executives hope the deeply discounted deals will bring in diners who are spending less when they eat out, or opting to stay home altogether.
