McDonald’s Puerto Rican Franchisees Say It Broke FTC Rule
This article is for subscribers only.
McDonald’s Corp. franchisees in Puerto Rico say the company broke a Federal Trade Commission rule by selling its restaurants there to Latin American restaurant operator Arcos Dorados Holdings Inc.
McDonald’s, the world’s biggest restaurant chain by sales, is in violation of the FTC’s Franchise Rule, which requires disclosure of material information to franchisees, according to a complaint filed with the FTC yesterday on behalf of seven franchisees in Puerto Rico. When the company sold its Puerto Rican stores and the franchising rights to that market in 2007, it breached its franchise agreement, according to the complaint.