Franchisee associations have sued franchisors over encroachment and some cases changed contract terms

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Territory protection clauses give way the moment the brand opens a second location nearby Multi-unit franchisees now own most locations which leaves the single-store owner with less bargaining power Royalties of 5 to 8 percent plus a marketing fund take the margin before the franchisee pays rent Ghost kitchen franchises sell a menu rather than a store and the unit economics look nothing like a restaurant Selling a franchisor can change the whole support model because franchise agreements usually allow it Item 20 of the FDD lists every closure and transfer so read the churn table before signing anything Subway lost thousands of US locations and saturation is the explanation franchisees keep giving Franchise disclosure documents run 200 pages and the Item 19 earnings claim is optional so often missing A renewal is rarely on the same terms because the remodel clause forces a second capital investment Why do sequels often disappoint fans?