The popular chain Steak ‘n Shake has sued the Colorado franchise to stop its operations, the Denver Post reports. The Indiana-based chain is suing in federal court for the control of the locations, in Centennial and Sheridan, due to allegations of the locations overpricing the menu, as well as other menu concerns.
The chain said it ended its agreement with the owners of the Denver-area franchise a month ago, yet the locations are still operating under the signature restaurant’s banner and have branded products. The chain claims that the franchisees have ignored mandatory menu offerings, specifically a popular $4 menu. Steak ‘n Shake Enterprises filed suit in U.S. District Court in Denver on July 19th, hoping to stop the operation of the locations.
The root of the case, according to letters, was customer complaints about menu prices. Some of these complaints began as early as May, claiming that some items were up to $2.29 more than the national ads indicated.
Corporate officials have instituted a system wide uniformity in menu pricing and promotions, including franchise locations.