Brazil Franchisees Sue McDonald's

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Sao Paulo, Brazil--An economic slowdown and sliding currency are squeezing profits for McDonald's franchisees in Brazil, and many are complaining that their sales are being decimated by a slew of new stores opened under the company's aggressive global expansion plans. Some franchisees are suing McDonald's, alleging illegal rent manipulation and "cannibalization" of their sales by company-owned units. In light of lawsuits and unfair competition allegations made by its Brazilian franchisees, McDonald's could face an investigation by CADE, Brazil's antitrust watchdog. --Associated Press

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