1. For fast food franchises across the United States, the fast food chains are periodically sued by franchisees who are upset about encroachment, and inflated prices charged by suppliers. This is in page 100 paragraph two and the evidence shows that fast food restaurants have a lot of trouble in legal issues.
2.Subway has been involved in many unusual legal actions. For example, instead of recruiting franchisees the way most fast food restaurants do, Subways relies on "development agents". Because the agents are really considered independent contractors and their salary is dependent on how many Subways are open in their area. And compensations their work, is them receiving some of the money that is paid in the subway franchisees, and annual royalties. But when agents fail to meet their monthly quotas they are forced to pay the company for the money they owe. This puts pressure on the agents to open new subway restaurants, even if they are not close to each other in the agents area. Subway often makes new franchises, work 50 to 60 hours to earn enough money to get by.
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