Franchisees Challenge KFC Over Control Of Ads

Law360, New York (November 1, 2010, 5:43 PM EDT) -- A group of KFC Corp. franchisees delivered its closing arguments Monday in a lawsuit against the fast-food chain's corporate headquarters over the company's advertising policy, arguing that amendments to KFC's corporate documents in 1997 gave franchisees the power to propose and approve alternate advertising recommendations.

At a hearing in the Chancery Court of the State of Delaware, the franchisees — KFC National Council and Advertising Cooperative Inc. — said that the terms of a 1997 settlement between the group and the KFC corporate headquarters allowed the...
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