During the recession, Dunkin' became known for spying on its franchisees

In a who's who list of what this journal considers as some of the most abusive franchise systems over the past few years, Forbes lists the top franchise chains that have sold the most opened franchise units through the Great Recession. It throws in a few strong franchisors to help wash the soiled ones.

1. Subway – As America's largest franchise chain, growing a few comfortable percentage points puts out a lot of new sub shops. One problem though was squeezed profit margins at the store level. However, kudos to this chain: Its franchisees and the franchisor collaboratively helped reshape the sub shop industry to its advantage during the Great Recession.
2. Jani-King — Courts say that janitorial service franchisees are really just underpaid employees in disguise.
3. Jazzercise
4. McDonald's — America's second largest franchised chain is the bellwether of the QSR sector.
5. Southern Tsunami — Tsunamis, earthquakes and nuclear power plants really have an image problem since 2011. AFC Franchise Corp is a concept that for over two decades has quietly grown under the radar. Still, having the franchisor directly collect payments from customers and then reimburse its franchisees is a recipe for disaster (see Coverall). 注意してください。
6. Coverall — Courts rule that the franchisor really is just trying to get around labor laws by having underpaid employees sign up as franchisees. Critics say the franchisor has found a fertile market of franchise buyers with new immigrants.
7. Liberty Tax — A lot of legal turmoil and shakeout in the tax preparation industry in the past few years. Trouble in California too.
8. Quiznos — An imploding franchise chain that in 2010 had to settle one for the record books — $206 million for abusive franchising practices with its franchisees.
9. Health Mart — I don't know much about Health Mart, but seeing it on this list makes me curious about what might come up.
10. Dunkin' Donuts — The franchisor was born again when it had its initial public offering late last year. But not long ago when Jon Luther was CEO, it was regarded as one of the most litigious franchisors against franchisees on the planet.

In this industry, it is obviously hard for seasoned business reporters and experts to sift the fast growing wheat from the troubled tares. Alas poor McDonald's, Subway and others — to be lumped into such a group on a soiled table.