Coalition of Franchisee Associations

August 31, 2023

Some Comments Sent to Federal Trade Commission

   Is franchising fair? All sides weigh in

From the article:

"An Idaho McDonald’s franchisee, Kyle William, wrote about the perils of non-compete agreements in franchising contracts. The FTC’s proposed ban on new and existing non-compete clauses wouldn’t directly impact franchisors—at least not yet.

Williams wrote that his contract explicitly states that if the agreement expires or is terminated, he cannot operate a similar business for 18 months in the area. His 14 restaurants have terms of 10 or 20 years, and once those expire, McDonald’s can decide whether to renew the contract. “If I am required to relinquish my franchise during or after the end of the contract term, the non-compete clause in the McDonald’s contract makes it impossible to use my experience to operate, work for, or invest in another similar business,” William wrote."


Anonymous said...

Kyle. You can expect to receive intimidation and harassments from the franchisor for your brave (and TRUE) comments. Expect to be deemed unexpandable at your next operator review. I sincerely hope you are a NOA member, because the NOA is the ONLY one who will stand by you and fight for your rights!
(forget the feckless NFLA and the useless company Ombudsman program)

Anonymous said...

Brave soul Mr Williams. It was nice knowing you.