In fast-food chain Burger King's ongoing efforts to remake itself in the wake of declining profits and increased competition, it has crossed one important task of its list: resolving ongoing issues with its franchise owners. The business disputes between the corporate headquarters and independent franchise owners began in 2009, when Burger King told franchisees to place double cheeseburgers on the value menu and begin selling them for $1.00.

The owners refused, claiming that they would lose money on the cheeseburgers at that price, and a long legal battle began. Now, the parties have reached a settlement that will leave the double cheeseburgers on the value menu, but sell them for $1.29, which is the price they have been for over a year. According to the franchisees, each double cheeseburger costs $1.10 to make and sell.

While the franchise owners did not receive any sort of financial payout under the terms of the settlement, they did gain one valuable asset. They will now have more of a say in future company decisions regarding the chain's value menu offerings and prices.

Burger King has dealt with declining sales in recent years, due largely to the fact that its main customer base of men between the ages of 18 and 34 were experiencing high rates of unemployment, and therefore were buying less food at Burger King and other restaurants.

Six months ago, the company was bought by 3G, a Brazilian investment firm, for $4 billion. Since the acquisition, the firm has replaced key members of management, laid off workers, and cut costs across the board. The resolution of the franchisee dispute is a key step for the company as it continues to move forward.

Source: ABC News, "Burger King Settles Value Menu Franchisee Lawsuit", Christina Rexrode, 18 April 2011