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. Tom Niesen had a lawyer check out the contract before he bought a franchise for sales-training centers in Texas. He hasn't gotten everything he expected from the franchising company and plans to renegotiate the contract when the time comes. But he's not embittered.