Franchisers, Facing Challenges to Business Model, Punch Back
Franchisees that are unhappy with their current situation have found allies in state legislators and federal regulators and have been pushing for new laws and rules. However, the process has been slow.
You may think you're only visiting one company when you go to a McDonald's or Jiffy Lube. You're more likely to be visiting two businesses: the franchisee who operates that location and the franchiser, the company that owns its intellectual property.
Conflict is a natural part of this relationship. However, it has boiled over in recent months as franchisees claim they are being squeezed from the profits that their businesses generate through new fees, vendors required, and restrictions on their ability sell.