Complaints by franchisees, or the operator of a particular location, about the way franchisers dictate operating procedures have become highly inflamed lately, with a new report from the Government Accountability Office suggesting that they may be even more disgruntled than regulatory filings suggest.
The gist of the complaints is that franchisers are squeezing franchisees for more and more fees on services that used to be covered by the original agreement, according to an analysis by the New York Times.
In other complaints, NYT reported that hotel franchisees, squeezed by lost revenue during pandemic lockdowns, "say they have also been hurt by the hotel brands' loyalty programs, which require the hotelier to rent rooms at a reduced rate."
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