Why the FTC may be taking a closer look at franchising

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The US Federal Trade Commission seems ready to take a closer look at franchising.

This week’s episode of the Restaurant Business Podcast “A Deeper Dive” features two people who ask the agency to do just that. Eric Karp, an attorney with Witmer Karp Warner and Ryan law firm, and Subway operator and franchisee Keith Miller, explain their latest commission request to investigate nine franchises.

These franchises include Subway, Dickey’s, and 7-Eleven, as well as IHG Hotels, Choice Hotels, the UPS Store, Experimax, Supercuts, and Massage Envy.

Karp represents, among others, the Coalition of Associations of 7-Eleven Franchisees, which co-authored the request for an investigation asking the Commission to deal with issues related to the contracts between franchisors and franchisees. Miller, as an attorney, campaigned for more oversight over franchising.

The two discuss the possible implications of their request for an investigation, whether it will lead to action and why the Commission seems willing to look into the matter further than in the past. They also talk about why such regulations are necessary.

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