Fast Food Menu Pricing Franchise & Franchisee Disputes

Last updated on March 25, 2025

Navigating the complexities of owning a fast food franchise often involves balancing control and profitability between franchisees and franchisors, especially when it comes to menu pricing. Franchisees may wish to tailor prices to meet local market demands, while franchisors typically advocate for consistent pricing across locations. Franchisors also aim to drive traffic to stores and maximize revenue (ie. royalties), while franchisees need to balance this with their aim toward profitability.  This dynamic can often lead to major disagreements, conflicts and menu pricing disputes, where experienced and trusted legal representation in the legal niche of franchise law becomes crucial.

At Zarco Einhorn Salkowski, P.A., we are proud to maintain a national reputation for championing the legal rights of fast-food franchisees embroiled in pricing disputes with their franchisors. Led by Founding Partner Robert Zarco and his experienced team of attorneys renowned nationally as the “Great Equalizers,” our firm has spent over three decades advocating for franchisees against larger corporate entities. We see franchise law as a modern David vs. Goliath battle and are dedicated to ensuring franchisees have a fair chance with a balanced playing field to commercially succeed and thrive. As one of the few nationally recognized law firms focused on franchisee rights for over three decades, our experienced attorneys are ready and waiting to advocate and solve your business dispute over pricing challenges.

Key Considerations in Menu Pricing

Establishing menu prices involves multiple considerations that can significantly influence your strategies and profitability:

1. Franchise agreement compliance: The franchise agreement often includes pricing guidelines that franchisees must follow. Deviating from these can lead to disputes and potential legal action.
2. Antitrust concerns: Price setting must comply with antitrust laws, which prevent unfair competition. Franchisees must avoid collusion or practices that could be deemed anti-competitive, and franchisors must also be careful of violating antitrust laws.
3. Local competition and market conditions: Prices should reflect local market conditions and competition. Understanding the local economic landscape helps in setting competitive and attractive prices.
4. Cost fluctuations: Changes in ingredients and operational costs can impact pricing. Franchisees need flexibility to adjust prices in response to cost variations.
5. Advertising and promotions: Pricing strategies should align with promotional activities and advertising campaigns to maximize impact and sales, while remaining commercially viable.
6. Sales tax compliance: Compliance with local and state sales tax regulations is crucial. Incorrect pricing due to tax miscalculations can lead to legal issues.
7. Consumer protection laws: Pricing practices must adhere to consumer protection laws to avoid misleading customers and potential legal ramifications.

Though these factors are complex, our firm’s deep understanding of franchise law ensures that we can help you assert your rights and defend against any breach accusations and pricing disputes with your franchisor

Free Initial Consultation Regarding Fast Food Franchise Pricing Disputes

For expert guidance on fast food menu pricing disputes, contact Zarco Einhorn Salkowski, P.A., to schedule a free consultation. Call us now at 888-580-7844 to arrange an appointment.

Fast Food Menu Pricing FAQ:

Do franchisors have complete control over a fast food franchisee’s menu prices?

Franchisors often seek to maintain uniformity across their brand by controlling the pricing of menu items offered by franchisees. This control is typically outlined in the franchise agreement, which may include specific pricing guidelines that franchisees are required to follow. The intent is to optimize revenue and customer traffic, ensure a consistent brand image and customer experience across all locations. However, this can lead to tension, as franchisees may experience diminishing profitability and may wish to adjust prices to better reflect local market conditions, such as competition and cost of living variations. While franchisors have a vested interest in brand consistency and increased volume, franchisees argue for the flexibility to make pricing decisions that can enhance their competitiveness and profitability. Ultimately, the extent of control a franchisor has over a franchisee’s menu prices depends on the terms of the franchise agreement and the legal framework governing franchise operations. Zarco Einhorn Salkowski, P.A. has extensive experience and track record  advocating and negotiating aggressively to find a resolution to your menu pricing disputes.

Can fast food franchises charge different menu prices than other franchisees?

Franchises can indeed charge different prices, but this largely depends on the specific franchise agreement and the policies established by the franchisor. Generally, franchisors strive for pricing uniformity across their brand to maintain consistency and a cohesive customer experience. However, franchisor mandates on pricing and other requirements must be considered commercially viable based on real data studies.  Franchisees often seek the flexibility to adjust prices based on local market conditions, such as variations in competition, cost of living, and consumer demand. This flexibility can be crucial to profitability, particularly in areas with significantly different operational costs, like urban versus rural locations. For instance, a franchisee in Chicago or Miami might need to set higher prices to cover elevated rent and wages, compared to one in a less populated suburban or rural area. Some franchise agreements provide franchisees the autonomy to set their own prices or offer promotions, where franchisees have the flexibility to determine pricing and promotions. Zarco Einhorn Salkowski, P.A. can help if you are exploring your legal options around challenges and disputes regarding fast food menu pricing.