Multi-unit franchisees now own most locations which leaves the single-store owner with less bargaining power

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Subway lost thousands of US locations and saturation is the explanation franchisees keep giving Franchisee associations have sued franchisors over encroachment and some cases changed contract terms Royalties of 5 to 8 percent plus a marketing fund take the margin before the franchisee pays rent Territory protection clauses give way the moment the brand opens a second location nearby Franchising a social model spreads it fast and leaves the brand doing quality control it cannot afford Franchisees are affiliated with the brand without being owned by it Consumer co-ops like REI thrive while the UK Co-operative Group keeps shrinking and the difference is category choice Ghost kitchen franchises sell a menu rather than a store and the unit economics look nothing like a restaurant Franchise disclosure documents run 200 pages and the Item 19 earnings claim is optional so often missing Item 20 of the FDD lists every closure and transfer so read the churn table before signing anything