- 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.
Among the actions taken by the FTC was issuing a policy statement warning brand owners that it is illegal to discourage franchisees from speaking with regulators about unfair practices or potential law violations through non-disparagement contract clauses, or any threat of retaliation. 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.
"Today the Commission is making clear that contractual terms prohibiting franchisees from reporting potential law violations to the government are unfair, unenforceable, and illegal," the FTC statement said.Telus Corp. has informed around 150 call centre employees based in Ontario they must relocate by October, apply for another role or agree to be laid off.