3 ms·
I am surprised the franchisees haven’t launched a class action. No other fast food chain has these issues.
by voisin 3y ago
I am surprised the franchisees haven’t launched a class action. No other fast food chain has these issues.
- 0cf8612b2e1e 3y agoSurely the franchise agreement would prohibit such an action?
- voisin 3y agoI am not sure such a clause would be upheld in a scenario where the franchisor blatantly acts in bad faith outside of industry norms to fleece the franchisee. There is a reasonable expectation of good faith.
- liveoneggs 3y agohttps://www.nytimes.com/2019/06/28/business/subway-franchisees.html https://www.nytimes.com/2019/06/28/business/subway-franchise...
- krisoft 3y agoIt's probably not even that. As a franchise you are under the thumb of the big corporation. They have a lot more money, and a lot more leverage to break you if you start suing them. They can probably inspect your premises, find 200 violations normally overlooked and then suspend your right to use their branding or suppliers. Sure you might win eventually, maybe in court. And then maybe you can sue them that the inspection happened in retaliation, but do you really want to risk that?
- daniel-cussen 3y ago[dead]
- kevinventullo 3y agoFWIW, I imagine the “invisible hand” is already in effect. That is, at the margins there are probably some potential franchisees who were dissuaded by McDonalds’ actions here.
- saikia81 3y agoIs this an American joke I'm too European to understand? /s