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CHICAGO — Little Caesars franchisees Wednesday resolved a class-action settlement valued at $350 million against franchisor Little Caesar Enterprises, Detroit, the nation’s fourth-largest pizza chain, and the Little Caesar National Advertising Program, through which franchisee funds were funneled.
The settlement eliminates franchisee contributions (4% of their gross revenues) to the national advertising fund and creates marketing, operations and other committees and components common to franchise restaurant systems.
“This is nothing less than a complete restructuring of the relationship between Little Caesar and its franchisees,” said Michael Caddell of Caddell & Chapman, Houston, lead counsel for the franchisees.
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