Brian Callaci, Chains of Command. University of Chicago Press. 2026. ISBN: 978-0-226-82870-1. $25.00.
Franchise businesses are everywhere in the United States and, especially over the past few decades, in the world. A cab driver in Inverness, Scotland told my wife and I that the nickname for the local McDonald’s is “The American Embassy.” There’s so much to love about Scottish humor: biting satire with a huge portion of truth.
In Chains of Command, author Brian Callaci examines the history of franchising in the United States, focusing on how franchisors sculpted their contracts and the surrounding legal environment powering the business model. The book’s subtitle, The Rise and Cruel Reign of the Franchise Economy, accurately depicts his findings.
Callaci, who earned his PhD from the University of Massachusetts Amherst and is chief economist for the Open Markets Institute, unapologetically argues that contracts offered to franchisees greatly restrict the restaurant operators’ freedom and, in the best case for the franchisor, entail a rule-following operator working straight out of the manual and squeezing every possible penny out of their labor budget. This result maximizes revenue for the franchisor, helps generate a reasonable return for the franchisee, and denies workers the leverage required to improve their circumstances.
The first several chapters of Chains of Command review the business and legislative history of franchise operations in the United States, with substantial discussion of how the International Franchise Association (IFA) fought on behalf of the franchisors it represented. It’s a bit ironic that Chains of Command was published by the University of Chicago Press given that so many of the IFA’s economic arguments for their business model came from the Chicago School, but that’s the joy of academic freedom. Some of those positions regarding independent contractor status, constructive employment, and business practices relate to businesses well beyond business model franchises. The Fight for Fifteen movement, which fought to secure a living wage for fast food workers, and unionization drives are additional elements that factor into Callaci’s analysis.
I recommend Chains of Command on the strength of its analysis. Callaci’s description of the IFA’s work and how they used various legal mechanisms (such as trademark law) to create their desired regulatory environment provides real insight into the evolution and current operation of franchised businesses. Also, as a member of a union household (International Alliance of Theatrical Stage Employees Local 28) who benefits from excellent health insurance earned through collective bargaining, I have great sympathy for the workers and franchisees who participate in the industry.