Brazil Franchisees Sue McDonald’s
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Sao Paulo, Brazil–An economic slowdown and slidingcurrency are squeezing profits for McDonald’s franchisees inBrazil, and many are complaining that their sales are beingdecimated by a slew of new stores opened under the company’saggressive global expansion plans. Some franchisees are suingMcDonald’s, alleging illegal rent manipulation and”cannibalization” of their sales by company-owned units.In light of lawsuits and unfair competition allegations made by itsBrazilian franchisees, McDonald’s could face an investigationby CADE, Brazil’s antitrust watchdog. —AssociatedPress
Sao Paulo, Brazil–An economic slowdown and slidingcurrency are squeezing profits for McDonald’s franchisees inBrazil, and many are complaining that their sales are beingdecimated by a slew of new stores opened under the company’saggressive global expansion plans. Some franchisees are suingMcDonald’s, alleging illegal rent manipulation and”cannibalization” of their sales by company-owned units.In light of lawsuits and unfair competition allegations made by itsBrazilian franchisees, McDonald’s could face an investigationby CADE, Brazil’s antitrust watchdog. —AssociatedPress
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