One takeaway from the paper is that disclosure is necessary but not sufficient: Franchise Disclosure Documents make these restraints visible, but they do not undo switching costs,hold-up, or post-term noncompetes.
The FTC's Franchise Rule emphasizes disclosure over substantive regulation.
Marshall Steinbaum@econmarshall.bsky.social🚨🚨Revised paper 🚨🚨
The Balance of Power in Franchising
w/@ulrichatz.org, Blake Eliason, @mikelipsitz.bsky.social, @pnorlander.bsky.social, & @stpinto.bsky.social. We built the 1st comprehensive panel dataset of franchise contract terms: 46,000 documents, 4,500 chains, 20+ provisions, 2009-2024.
/1