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How Franchising Sparked the Gig Economy | Odd Lots

Bloomberg Markets •
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When the fast‑food boom began in the 1950s, the franchise model let independent operators license brands like McDonald’s and Dunkin Donuts, spreading rapidly across the country and reshaping how Americans earn a living.

Legal battles over franchise contracts opened the door to the gig economy, allowing Uber drivers to be treated similarly to local Chick‑fil‑A operators. Franchises dictated operational standards, wages, and even worker surveillance, setting a template for gig work.

In the episode, Brian Callaci—chief economist at the Open Markets Institute and author of *Chains of Command*—explains how franchise contracts are structured to tightly control franchisees. He draws parallels between the franchise model and gig work, highlighting how the same contractual logic applies to platforms like Uber.

Callaci also discusses how franchises pioneered real‑time worker surveillance and the broader implications for workers’ rights and autonomy in the modern economy.