Burger King Corp. has cut its ties with the association representing its franchisees, saying it disrupted the company’s brand-building initiatives, according to news reports.
The QSR now has only minimal contact with officials at the National Franchisees Association (NFA) and will pull a $1 million subsidy from the group and add it to Burger King’s advertising fund, the Associated Press reports. The NFA represents franchise owners who operate more than 6,000 Burger King restaurants in the U.S. and Canada.
The action comes just two months after the NFA filed a class action lawsuit against McDonald’s Corp. for unfair competition from McDonald’s Monopoly games and other promotions (Aug. 23 Xtra). The NFA dropped the lawsuit eight days later. Miami, Fl-based Burger King was not party to the suit.
In a letter to the association last month, John Chidsey, Burger King’s North America president, cited “many instances of the NFA’s non-cooperation and affirmative disruption of efforts to improve the Burger King system,” AP reports. Chidsey said the association’s leaders failed to publicly back the company’s efforts to expand restaurant hours or to promote a value-menu strategy, competitive pricing goals and gift cards.
Burger King representatives could not be reached for comment.
In response, NFA Chairman Daniel B. Fitzpatrick wrote a 12-page letter this month to Burger King Corp. saying its decision “to sever relations with the …NFA is extremely regrettable” and is based on “an erroneous set of facts, innuendo and rumor,” according to AP.
NFA Executive Director Frank J. Capaldo could not be reached for comment.
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