In Fast Food Nation by Eric Schlosser he addresses the concept of encroachment.(pg.99) Encroachment is when a franchisor opens a new restaurant of the same chain next to an already existing one. The franchisee loses revenue and business because of the new restaurant that was opened. Franchisors believe "more restaurants usually means more sales."(pg.99) For example, I work for Friendly's which is a franchise. If another Friendly's were to open by the same franchisor, that would be considered encroachment. Franchisees frown upon this idea and I can understand why. Franchisees are also trying to make money for the company and themselves but how is that possible when other restaurants are being opened that threatens their business?
The Coble Bill was introduced to Congress that would place limits on "encroachment" and to allow franchisees to form their own unions and ultimately be able to sue the franchisor of the company. "We only seek to bring some order and sanity to a segment of our economy which is growing and may be growing out of control,"(pg.101) which was said by Howard Coble. I agree with the bill although others oppose it (obviously the franchisor). I believe that if a franchisee has an issue they should feel comfortable enough to bring it to surface. Why shouldn't the same food chain band together and help each other? They are both benefiting anyhow. Themselves and the company.
