Year Event Why It Matters Control Function 1950 Dunkin’ Donuts Founded 1 store. Founder makes coffee. Intent = product. Intent Preservation 1955 Franchise Rule Draft FTC starts regulating. 16 pages. Baseline. Constraint starts 1963 Ray Kroc + McDonald’s Manual 600-page ops manual. Proves scale = documentation. Compression begins 1970 OSHA Created Workplace safety = federal. First compliance layer on franchisee. Hierarchy 1979 FTC Franchise Rule Final FDD required. 23 states add own rules. Views multiply. Hierarchy 1986 IRS Code Simplification “Simplified” to 17,000 pages. Small biz burden up. Compression Year Event Why It Matters Control Function 1990 ADA Passed 6,000 pages of regs. Every store = bathroom lawsuit risk. Constraint monetized 1993 FMLA Passed Leave tracking. HR = compliance, not ops. Hierarchy 1996 Telecom Act POS systems, credit cards. Tech layer added. Propagation 2002 Sarbanes-Oxley Hits public franchisors. Audit costs trickle to franchisees. Constraint 2003 Dunkin’ Brands IPO \$2.4B. Wall Street = new constraint. Same-store sales rule. Extraction begins 2006 NYC Trans Fat Ban Menu engineering = legal engineering. Recipe = liability. Compression 2008 Financial Crisis Credit freeze. SBA loans require 40+ docs. Franchisees locked out. Lock-in starts Year Event Why It Matters Control Function 2010 ACA Passed 2,700 pages. 50-employee rule. Franchisee splits stores to avoid. Constraint 2014 NLRB Joint Employer Rule Dunkin’ liable for franchisee labor. Control without ownership. Hierarchy 2015 NYC \$15 Min Wage Labor = 35% of revenue. Pricing power gone. Extraction 2016 OT Exemption Rule Managers <\$47k = overtime. Franchise model breaks. Compression 2018 GDPR + CCPA Customer loyalty app = data liability. FDD adds 40 pages. Constraint 2018 Dynamex ABC Test CA Contractors = employees. Gig economy ruling hits franchisees. Hierarchy 2020 COVID PPP Loans Forgiveness = 11-page app + 25 docs. Free money = audit risk. Lock-in Year Event Why It Matters Control Function 2021 Supply Chain Crisis Cup/lid shortage. Franchisee fined for brand standards breach. Extraction 2022 SEC Climate Rules Draft Scope 3 emissions = track coffee bean to cup. FDD → 740 pages. Compression 2023 FTC Franchise Rule Update First change since 2007. 400+ pages comments. More disclosure. Hierarchy 2024 DOL OT Rule \$58k Managers <\$58k = overtime. Only MBAs can run store. Lock-in 2024 CA FAST Act Fast food council sets wages. Franchisee = landlord, not owner. Extraction 2025 EU AI Act Drive-thru AI = high-risk. Franchisee needs lawyer to use headset. Constraint 2026 Kioxia \$250B Memory > Toyota. POS system = AI. Can’t ring coffee without cloud. Lock-in Year Food_Service_Workers_BLS_353000 Franchise_Managers_BLS_119051 Compliance_Consultants_FranData 1995 7200000 280000 1200 2000 8100000 340000 3800 2005 9200000 410000 9500 2010 9800000 470000 18000 2015 10800000 540000 32000 2020 11200000 610000 48000 2024 11900000 680000 62000 Year Franchise_Units_IHS_Markit Avg_Years_Owner_Experience Franchise_Litigation_AAA 1995 485000 12.4 1800 2000 590000 11.1 2400 2005 710000 9.8 3200 2010 750000 8.2 4100 2015 800000 6.9 5400 2020 780000 5.4 6800 2024 790000 4.8 7900 Year Health_Inspections_per_Store Royalty_Ad_Fee_Pct_Sales Lawsuits_per_1k_Units 1995 2.1 5.5 1.8 2000 2.8 5.9 2.4 2005 3.4 6.2 3.1 2010 4.2 6.5 4.2 2015 5.1 6.9 5.8 2020 6.3 7.2 7.4 2024 7.1 7.5 8.6 Year,Stores,SKUs_Per_Store,Vendors,Franchisees,Propagation_Index,Notes 1950,1,12,8,1,96,"Founder makes coffee. Intent = product." 1960,100,18,25,50,45000,"Regional spread. Manual still fits in binder." 1970,300,22,40,150,264000,"OSHA starts. First compliance layer." 1980,1000,28,65,500,1820000,"FTC Franchise Rule 1979 active." 1990,2000,35,90,1200,6300000,"ADA passed. End Proliferation." 2000,5000,42,130,2800,27300000,"SOX coming. Hierarchy starts." 2008,7200,48,160,4000,55296000,"Financial crisis. Credit freeze." 2015,11800,55,210,6500,136290000,"$15 min wage NYC. Compression." 2020,12600,62,250,7000,195300000,"COVID. PPP loans. Lock-in starts." 2024,13200,68,280,7300,251328000,"FDD 740 pages. Signal deficit critical."