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Five problems in franchising that hurt franchisees

RB’s The Bottom Line looks at five issues that can cause problems for operators that invest in the business.


Pizza Hut wants its say in who buys NPC International restaurants

The franchisor is making its rights known in the sale process of the franchisee’s 900-plus Pizza Hut locations.

The chain is selling units all over the country to new franchisees, but some of its early operators struggled and are filing lawsuits.

The mega-franchise has assumed management of 41 units in the Mid Atlantic area.

This week’s episode of the RB podcast “A Deeper Dive” features Robert Purvin, an expert on franchising and franchise relations, talking about the risks to franchisees.

Carino's units will also serve as ghost kitchens for the barbecue brand.

The company wouldn’t give the U.S. franchisee association's president an extension on a remodel requirement unless the group dropped its lawsuit against the franchisor. The location is now closed.

As stories of problems at franchise brands mount, advocates and some regulators call for more enforcement at the federal level.

The move comes as the franchise community is awaiting action to overturn last week's bombshell court decision.

A Florida operator sued the fast-casual franchise and its Florida developer, saying they routinely broke franchise rules in selling stores to franchisees.

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