The King hath won the latest round of a battle with upstart serfs, as a judge ruled that Burger King has the right to set maximum prices for some menu items. However, the indentured servants, er, franchisees that sued the chain over its value menu, are still planning to argue that the pricing system was entered into in bad faith.
Reuters summarizes the battle thusly:
A Miami court ruled on Thursday that Burger King Holdings has the right to set prices at its stores but said allegations by the franchisees of bad faith by the company had enough plausibility to be argued in court.
The National Franchisees Association had alleged Burger King admitted that selling its double cheeseburger at $1 could lead to the bankruptcy of stores.
Burger King said in a statement emailed to Reuters it was pleased by the court’s decision to reaffirm its rights, and added that extensive testing “more than validated the business case for the addition of this competitively priced product to its Value Menu.”
The ruling could make it easier for chains to add even more low-cost items — such as Taco Bell’s new $2 meal — without fear that franchisees will balk.