Franchisee rights

Politics, events and news that affect franchisee rights

State Senator Calls for Fairness to Alabama Franchisees

When he was a franchise owner, Alabama state senator Chris Elliott (R) experienced first-hand the lop-sided relationship that is all too common between franchisors and franchisees. Now a senator, he wants to do something about it.

He writes:

Unfortunately, it turned out that my franchisor was not interested in the long-term success of my business. They were interested in corporate profits, regardless of how it impacted the small business owners who operated their franchises.

Max Muscle® Franchise Owners form Independent Association

March 26, 2019 – Today, franchise owners of Max Muscle® Nutrition have announced the formation of Max Independent Franchise Owners Association (MaxIFOA, Inc.), a self-funded alliance to represent their interests with the South Dakota-based company. The organization, while working with Max Muscle Nutrition®, will be a unifying voice of franchisees, focusing on franchisee profitability while enhancing the brand to positively impact the system. 

Should Franchisees Foot the Bill for Franchise Remodeling and System Standards Modifications?

Franchise remodeling disputes have recently littered the franchise litigation landscape. The source of conflict in franchise remodeling disputes is not the ‘control’ issue but rather is it worth it.

Liquidated Damages Clauses, Franchising’s Unethical Hammer

The franchise industry is unique in so many ways, but that is not always good.  For most, buying a franchise, next to buying their home, is the biggest investment they will make.  Unlike all other investments they make, they risk everything in buying a franchise, every asset they own, and then some.  You ask, how can that be possible?  Besides the personal guarantees, many contracts contain a clause, or wording, that enables the franchisor to collect liquidated damages, or future unearned royalties.  If your franchise business fails, and you lose your investment and more, the franchisor has

Attendance at 2nd McDonald's Franchisee Meeting Triples

McDonald's independent franchisee association, the National Owners Association, has heated up fast. Over 400 owners attended the first meeting in Tampa, Florida, just two months ago. The two-day meeting which ends today in Dallas has drawn around 1,300, according to people there.

A Look at Current Franchisor-Franchisee Tensions

A pair of restaurant journalists take a deeper look at what seems to be a turn toward elevated tensions between restaurant franchisors and franchisees. They discuss such brands as McDonald’s, Jack in the Box, Papa John’s, Applebee's, Tim Hortons and Subway.

Restaurant Business Executive Editor Jonathan Maze leads off the 34-minute podcast by asking Editor at Large Peter Romeo of the same publication:

(1:41) What do you think is going on with companies such as Jack in the Box and McDonald’s and others that is leading to all of this tension?

Cracks Appear in United Facade of 7-Eleven National Franchisee Coalition

About 12 of the 44 local franchisee associations belonging to the independent National Coalition of Associations of 7-Eleven Franchisees (NCASEF) are expressing concern about two pending actions against the franchisor, its president and CEO that they feel may be going too far. Seeking understanding, they are asking for clarification from NCASEF'S executive team.

Jack in the Box Franchisee Association Wants Seat on the Board

The Jack in the Box National Franchisee Association is asking for a seat on the francisor's board of directors. Meanwhile the board continues to give the association the cold shoulder, despite the fact that the members own approximately 89 percent of the brand's restaurants.

Jack in the Box franchisees, growing increasingly troubled about the financial health of the San Diego chain, demanded Tuesday that they have input on corporate decisions they say are affecting their bottom line.

McDonald’s Franchise Owners Consider Forming an Independent Franchisee Association

McDonald’s franchisees are contemplating whether the time has come to have an independent franchisee association that advocates specifically for them, like some of their major competitors have.