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Log In / Register | Aug 14, 2018

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3 Comments

Do Franchise Owners really Own a business

Keith's comments are spot-on. More0ver, some franchisors put their corporate bottom line and 3 month's quarterly earnings, ahead of their franchisees, and soak franchisees with exorbitant and unethical fees. Franchisees take all the risk, and a short-sighted franchisor more interested in satisfying Wall Street than the long-term survival of its franchisees does no service to long term growth. Burger King seems to have recognized a few years ago and turned things around. Many franchisors have not and stick their heads in the sand.

Well Stated. Joint Employer bait

How can a franchisor lie with a straight face about not being a joint employer of a frachsiee's employees if the franchisor has a clause like this in its franchise agreements?

This confiscatory clause has a noose on the throat of the franchisee. What discretion does a franchisee really have about anything?

Jeffrey M. Goldstein's picture

Who Owns What?

It can’t be emphasized enough that franchisees nowadays buy little more than a limited right to receive a token revenue stream for a restricted period of time. These minimal revenue streams frequently are insufficient to allow franchisees to pay all of the aggregate costs associated with their franchises. Keith Miller’s insightful observations highlight how franchisor opportunism now blatantly expresses itself directly and explicitly in many current franchise agreements. So long as franchisees and potential franchisees continue to misinterpret (sometimes intentionally) this counterintuitive reality, they will perpetuate the very myth that systematically destroys franchisees on an ongoing basis.