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Why the FTC may take a harder look at franchising

Franchise attorney Eric Karp and franchisee advocate Keith Miller join the RB podcast “A Deeper Dive” to talk about their request for the agency to investigate franchising.

The U.S. Federal Trade Commission appears ready to take a harder look at franchising.

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

Those franchises include Subway, Dickey’s and 7-Eleven, along with IHG Hotels, Choice Hotels, the UPS Store, Experimax, Supercuts and Massage Envy.

Karp, among other things, represents the Coalition of Associations of 7-Eleven Franchisees, which co-authored the request for an investigation, which asks the commission to look at issues related to the contracts between franchisors and franchisees. Miller as an advocate has been pushing for more oversight of franchising.

The two discuss the potential impact of their request for an investigation, whether it will result in any action, and why the commission appears ready to look into the issue more thoroughly than it has in the past. They also talk about why such regulations are necessary.

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