And the company, he says, forces him to spend small fortunes remodeling his restaurants every five years, while IHOP isn't as tough on its own restaurants. The gravy dust-up is merely the latest entry in a growing catalogue of tensions between American franchising companies and their franchisees. For people who yearn for some degree of independence and wealth, franchising has long been seen as the ticket. Having heard stories of early McDonald's franchisees who now lounge aboard yachts, they hope to do the same. But the companies and their franchise operators have increasingly found themselves at odds over the past decade.
Disputes reach all corners of the industry.
Further inflaming relations are efforts in Congress to strengthen the hand of franchisees against franchise companies. A trade group representing franchise companies says such initiatives would wreck the industry. Many franchisees applaud the idea. Franchisees too often sign the contracts without understanding the implications, she added. Even when armed with knowledge, aspiring entrepreneurs can let emotions take over.