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Franchisee Class Action over Pricing Strategy

Posted on 26 August 2014

A group of Pizza Hut franchisees have launched a class action against the franchisor's discounted pricing strategy introduced by the franchisor to compete with competitors.

The franchisees claim they are being financially disadvantaged because of the pricing strategy and reports are they are seeking damages to cover the profits they have lost since the discounted price strategy was introduced.

The discontent between the parties shows how the interests of franchisees and franchisors can be at odds.  Here we have franchisees who seem to be hurting financially due to the strategy and a franchisor looking at the brand at a whole and it would seem attempting to remain relevant and competitive in the market place.

A directions hearing has been scheduled for 3 October, 2014.

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