A major franchisee has filed a lawsuit against Wendy’s International, alleging the company inflated a product’s cost and then improperly used the proceeds to support a national advertising campaign.
DavCo Restaurants Inc., a Maryland company that owns 160 Wendy’s restaurants, contends that Wendy’s required franchisees to buy only Coca-Cola products, set an inflated price for those products, and then used the funds for advertising.