Improving Franchise Operations to Keep Franchisor and Franchisees Happy
How to Optimize Franchise Operations, Improve Franchise Performance, and Avoid Franchise Disputes
January 2026
White Paper Overview
It is important for Franchise Owners (Franchisees) and Franchisors to work well together as it is in the best interest of both parties. This often ensures greater success, revenue, and profit for each side.
In recent years, there has been publicized conflicts between Franchisees and Franchisors resulting in brand damage. Franchisees often feel they are not receiving the value they were promised (resulting in higher costs, and lower revenues which decreases profitability). Franchise Operations believes if Franchisees follow the brand and marketing guidelines, operations playbook, and other franchise processes, they would be much more likely to be profitable.
Some notable publicized franchise challenges include the following:
Hardees terminates a large franchisee: Hardees sued ARC Burger, a 77-unit franchisee over unpaid royalties, rent & marketing funds.
Jack in the Box sells Del Taco franchise for $460M Loss: Del Taco Was Supposed to Be ‘a Very Good Deal’ for Jack in the Box. Instead, It Sold the Franchise at a $460M Loss.
Prominent McDonald’s franchisee sues the brand: One of the more prominent and successful franchisees (who operates 37 locations), claims McDonalds is using new standards to force him to sell.
The purpose of this white paper is to identify the common themes in Franchise disputes, along with the best ways for Franchise Operations (Franchisors) to avoid disputes and keep the Franchisees content.
Common Themes of Franchise Disputes
The following are key Franchisor/Franchisee dispute categories and themes.