In recent decades, Franchising has become, to an increasing extent, Unfairchising. Increasingly one-sided franchise agreements, mandatory arbitration clauses, NDAs and nearly non-existent federal oversight & enforcement have given franchisors the power to dictate nearly every aspect of the franchise relationship with impunity.
Many franchisees claim the “business ownership” once provided to franchisees now resembles indentured servitude or sharecropping.
Our FAIRCHISING Initiative is an open exploration, idea exchange and discussion of what changes would need to be made to restore the fairness to franchising, and to restore the promise of a Win-Win relationship franchising once provided. Businessman Jim Lager, who was a top franchisee for two major franchise brands and is now CEO of his independent Texas Hose Pro, coined the term “Fairchise” and intends to launch a fair franchising model based, in part, with the suggestions generated here.
What changes would be needed to restore fairness to the franchise relationship? To restore a win-win scenario in which both…