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NARRATOR: The next time you pull up to the drive-thru, you may not know it, but you're part of a business model that's fraught with turmoil. The model is called franchising, and it's spreading. Maybe you've heard the phrase "fast food franchise," but do you really know what it means or how it works? You might be surprised by how franchising is affecting your community and the whole economy. We're talking way more than burgers and fries.

On one side, a company decides it has a good thing going. It wants to expand, but it doesn't want to run all the new locations. It's just not familiar enough with those places. It might be short on money for the expansion. And it doesn't want to employ a bunch of local workers. And the company wants the person in charge of each location to be someone special, someone with skin in the game.

On the other side is that special person. She wants to start a business. She knows the local market. She has some money to invest or can qualify for a loan, but not enough to buy property, fix it up and buy all her equipment, and maybe not enough for much marketing. She might not know the industry very well and would rather not go it alone.

So the sides make a deal. The company gives its new franchisee what she needs to hit the ground running. She takes the company's training course and pays an initial fee for the franchise.

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The franchise model depends on a good brand. That means, more than anything, consistency. If it's fast food, you'll see the same thing at every drive-thru window-- cashiers wearing the same logo, menus offering the same food, all prepared in the same way. The customers remain loyal to the brand no matter where they go. What protects the brand is the franchise agreement.

The rules for a franchisee might cover everything from operating hours to where she buys supplies. The agreement also requires the franchisee to pay royalties, typically 5% to 10% of the location's sales. But there's no guarantee the franchise will flourish. Franchisees go belly-up about as often as unfranchised owners. Still, many franchisees manage to hang on. Some do well, even open other locations.

The company and its franchisees don't always see eye to eye. The company might impose a higher royalty. It might limit any flexibility in finding supplies and setting prices. The franchisee can start to feel overburdened. But if she doesn't sign on and follow the rules, the company might take over the franchise. She might lose her business.

For the company's part, it has reasons to write rules and enforce them. Making all franchisees buy from the same supplier can help bring down cost, and higher fees can fund more advertising. The company also wants its franchisees to follow standard rules. Freeloading on the brand is not allowed.

Franchise employees, the folks who work behind the cash register, let's say-- they're not known for earning big bucks. But economists disagree about why. Some blame the wages and work conditions on the industries where franchising has taken off, where competition is cutthroat, and the jobs are low-skilled. Other economists blame low wages on the franchise model itself.

When a company franchises, they point out, it's adding extra owners. That means more people taking slices of the pie, so there's more pressure to cut costs like wages. And this leaves less money for the workers.

There's another debate about franchising-- how it affects the economy. One side claims the model has proven itself more efficient. That can mean lower prices for consumers and more consumption, so more production and more jobs. The other side claims that franchising leaves the workers with less money for buying stuff. And that means less consumption, less production, and fewer jobs.

We'll let the experts keep fighting about that. One thing is clear, though. This way of doing business, the franchise model, it's spreading. Gas stations, car dealerships, restaurants, convenience stores, hotels, eyewear retailers, tax services, child care centers, legal services, news media, janitorial services, home health care, dry cleaners, salons, house painting, IT support, carpet cleaning, pet supplies, hardware store, tutoring, gyms, real estate, printing, lawn care, embroidery services, play places, sign stores, battery stores, laundry mats, coffee shops, garage door repair, computer repair, cell phone repair, ice cream shops, [INAUDIBLE] services, massage services, car rental, leak detection, window cleaning, plumbers, home inspection, HVAC repair, travel agencies, marketing--