In recent months, franchisees of companies from the Hilton Inn to Subway have been pushing back against their corporate franchisors, claiming they are being squeezed out of profits. And a new study from the Government Accountability office found that franchisees tend to lack basic control over the operational side of their local storefronts, which can make turning a profit difficult. Yet despite these problems, many franchisees forgo reporting the deceptive and unfair practices of their franchisors.
We speak to Lydia DePillis, an economics reporter at the New York Times, to discuss the relationship between franchisees and their franchisors and the ongoing hurdles for regulatory franchise legislation. We also speak to Dr. Marcia Chatelain, Professor of history and African American studies at Georgetown University and author of the Pulitzer Prize-winning book Franchise: The Golden Arches in Black America, about how the struggle for civil rights and the growth of the fast-food industry in America have shaped one another.
