---
title: "Big Brand Franchisors, Franchisees Publicly Fight As COVID-19 Creates Industry Chaos"
url: https://burnaze.com/article/7087311c-870c-423d-b009-0e17231410ae
source: "1851 Franchise"
original_url: https://1851franchise.com/big-brand-franchisors-franchisees-publicly-fight-as-covid-19-creates-industry-chaos-2714393
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Regulation & legal"]
published: 2020-12-03T18:13:43.000Z
modified: 2026-11-01T01:37:50.575Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/3d9c744ad24274fe4556e404b34bf2ed4531.jpg
---

# Big Brand Franchisors, Franchisees Publicly Fight As COVID-19 Creates Industry Chaos

**TL;DR:** Franchised businesses have proven more resilient against the pandemic-induced economic downturn, but many big brands are seeing franchisees in revolt, with Subway and McDonald's franchisees publicly fighting their corporate offices. Subway franchisees bristled at the corporate office's plan to sell two foot-long subs for $10, while McDonald's franchisees say the brand didn't do enough to cut rent or defer royalty payments.

*originally published in 1851 Franchise on 2020-12-03. [Read the original](https://1851franchise.com/big-brand-franchisors-franchisees-publicly-fight-as-covid-19-creates-industry-chaos-2714393).*

## Story

Franchised businesses have proven more resilient against the pandemic-induced economic downturn than their independent counterparts, but after months of lockdowns, many big brands are seeing franchisees in revolt, according to a new report at the Wall Street Journal.

A sprawling, 2,000-word article at the Journal delved into a series of franchisor vs. franchisee fights across multiple industries that have ended in lawsuits and public bickering.

Subway franchisees, for example, bristled at the corporate office’s plan to sell two foot-long subs for $10, saying it was unprofitable.

“I get that franchising isn’t a democracy, but at the same time, it’s not a dictatorship,” a Subway franchisee told the journal.

Elsewhere, a yawning gap has opened up between the priorities of franchisees, many of whom are struggling to keep their businesses open, and franchisors, who tend to look at more macroeconomic trends.

McDonald’s franchisees say the brand didn’t do enough to cut rent or defer royalty payments. The brand countered that it had taken “unprecedented action” by spending $100 million on marketing, according to the journal.

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- menu pricing (topic)
- McDonald's (company)
- Subway (company)
- pandemic impact (topic)
- franchisee revolt (topic)
- franchisor vs franchisee (topic)
- rent and royalty payments (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/big-brand-franchisors-franchisees-publicly-fight-as-covid-19-creates-industry-chaos-2714393). Summarized by Burnaze (https://burnaze.com/article/7087311c-870c-423d-b009-0e17231410ae).