Wednesday, July 26, 2017

KFC Franchisee Sues Over Right To Sell Halal Chicken

In Illinois, the owner of eight Chicago-area Kentucky Fried Chicken franchises sued the franchisor, KFC, Inc. in federal court after it attempted to enforce a provision in the franchise agreement that effectively would destroy the ability of the 8 stores to sell halal chicken.  In Lokhandwala v. KFC Corp., (ND IL, filed 7/24/2017), the complaint (full text) alleged that in 2016 the company for the first time claimed that it had a long-standing policy of prohibiting religious claims about Kentucky Fried Chicken products.  The policy was aimed at preventing lawsuits and customer confusion.  The Halal Food Disclosure Requirements of Illinois law require sellers of halal food to post a disclosure statement identifying the distributor and slaughter facility. Plaintiff alleges contract law claims, as well as claims under the Illinois Franchise Disclosure Act, the Illinois Consumer Fraud and Deceptive Trade Practices Act. Courthouse News Service reports on the lawsuit.