Why Franchisees Are Investing in Brand-Owned Supply Chains

Franchisees have long accepted that they must buy equipment, ingredients, and uniforms from the franchisor — often at a markup. But in 2026, a growing number of franchisees are pushing back. They're forming purchasing cooperatives, suing to open up approved-supplier lists, and in some cases building their own distribution networks. This episode drills into one concrete case: the Subway franchisee revolt that began in 2021 and has since inspired similar battles at Dunkin', Burger King, and 7-Eleven. Lucas and Luna break down the economics — how a 15 percent markup on supplies can wipe out a franchisee's profit margin — and examine whether brand-owned supply chains are a legitimate quality-control tool or a hidden profit center that hurts the people on the ground. They also explore a quieter counter-trend: some franchisees are voluntarily opting into brand supply chains because of rising food-safety regulations and insurance requirements. If you're evaluating a franchise opportunity, this episode gives you a specific question to ask during discovery day. #FranchiseSupplyChain #FranchiseeRights #Subway #Dunkin #BurgerKing #7Eleven #PurchasingCooperative #FranchiseProfitability #FranchisorFranchiseeConflict #SupplyChainEconomics #FranchiseRegulations #Business #Entrepreneurship #SmallBusiness #FranchiseIndustry #FexingoBusiness #BusinessPodcast #FranchiseConversations Keep every episode free: buymeacoffee.com/fexingo