- A U.S. trade regulator on Friday announced a suite of actions taking aim at"unfair and deceptive practices" it said are illegally imposed on U.S. franchisees by their brand owners, such as requiring new fees not outlined in franchise contracts, or using contract provisions to discourage franchisees from speaking with regulators.
Relatedly, the agency said it was soliciting a new round of comments from franchisees, brand owners and other stakeholders. The National Owners Association, comprised of several hundred McDonald's franchisees, said in its comment that"the current climate is dictatorial and there is zero room for negotiation" with McDonald's. The burger chain unilaterally imposes new costs on franchise owners by making changes to the McDonald's operating manual, then uses non-disparagement clauses to silence critics, said the franchisee advocacy group, which formed in 2018.