I thought that Federal Anti-Trust laws prevented franchor's from dictating pricing.
Sounds like Biglari is a graduate of the Oakbrook school of Management; shareholders over Operators. One of my attorneys used to say "if you shoot the King, you'd better kill him. The wrath of a wounded King is beyond comprehension."
Can Franchisor's dictate pricing???
Legal or not franchisors dictate prices all the time. Franchisees who don't go along with pricing dictates get crushed by corporate.
They do dictate all the time but they run the risk of vertical restraint of trade by dictating to franchisees- company representatives are personally liable in that situation (can get jail time) so the "how"/"why" becomes very important
What would happen if MCD threw a Worldwide Convention and nobody came? Sadly we will never find out. We are not partners,we are employees!
The guy who owns Steak and Shake is no more a tyrant than MCD management. MCD influnces our prices, has virtually total control of our Marketing, limits our access to competitive bidding on seating and decor,forces us to contribute to OPNAD, etc etc etc
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