KFC National Council and Advertising Cooperative, Inc. v. KFC Corporation: A Cautionary Tale

The Delaware Chancery Court recently issued a decision severely limiting KFC Corp.’s right to control brand marketing in a case that offers several important lessons about managing franchisee relations. The case involved a suit brought against the international fried chicken franchisor by a special purpose entity formed to develop and manage the chain’s domestic advertising. The suit centered on the scope of the NCAC’s authority to control brand advertising.