The Wall Street Journal reports that Franchises, who pay fees and royalties in exchange for using franchisers’ business formats, have become much more militant in recent years about what they see as mistreatment by franchisers. In general, Ms. Kezios is seeking federal and state laws to give franchises more power in franchise arrangements. Among her goals: creating legally protected exclusive territories for franchisees.
How would you expect existing franchisees to react to this proposed regulation? How would you expect a potential new franchisee to react to this proposed regulation?
Tomas, Christopher and Maurice, S. Charles, “Managerial Economics 10th ed. (2011), McGraw-Hill Irwin Publishing.
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