When the fast food industry began booming in the 1950s, it did so via a new business model known as the franchise. This model allowed independent operators to license trademarks from a business like McDonald's or Dunkin Donuts, and it soon spread across the country, with huge consequences for how Americans are employed. Legal battles fought by franchises eventually opened the door to what's now known as the gig economy, allowing Uber drivers to be treated in much the same way as the operator of a local Chick-fil-A. We speak with Brian Callaci, chief economist of the Open Markets Institute, and author of the book 'Chains of Command: The Rise and Cruel Reign of the Franchise Economy.' Callaci breaks down how the franchise model works, how franchise contracts are structured to dictate how franchisees are supposed to run their businesses, the relationship between the franchises and gig work, and how franchises pioneered worker surveillance. Chapters: 00:00:00 - The Reality of Franchise Control 00:05:18 - Franchise Legal Structure 00:08:14 - Origins and Incentive Structure 00:10:11 - Historical Development and Legal Innovation 00:11:46 - Antitrust Battles and Legal Transformation 00:15:45 - Risk Distribution and Franchisee Benefits 00:19:35 - Labor Control Mechanisms 00:23:25 - Franchisee Selection and Modern Evolution 00:25:13 - Technology and Surveillance 00:29:22 - Connection to Gig Economy 00:32:49 - Empirical Research on Wages 00:36:10 - Franchise vs. Independent Business Comparison 00:38:55 - Union Organization Challenges 00:40:47 - Public Policy Implications Watch Bloomberg Vodcasts: https://www.youtube.com/playlist?list=PLe4PRejZgr0MS0Tqk_zQl1LVVTdWuH2Di Watch more Odd Lots episodes: https://www.youtube.com/playlist?list=PLe4PRejZgr0OJbRzA6nWybYiThLJd_ouz Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets. Join the conversation: discord.gg/oddlots Subscribe to Bloomberg Podcasts: https://bit.ly/BloombergPodcasts Check out more Odd Lots: https://youtube.com/playlist?list=PLe4PRejZgr0MuA6M0zkZyy-99-qc87wKV Get the Odd Lots newsletter: https://www.bloomberg.com/account/newsletters/oddlots And for all things Odd Lots, visit https://www.bloomberg.com/oddlots #Investing #Markets #Finance #Bloomberg #Podcast #OddLots Visit us: https://www.bloomberg.com/podcasts For coverage on news, markets and more: http://www.bloomberg.com/video Visit our other YouTube channels: Bloomberg Television: https://www.youtube.com/@markets Bloomberg Originals: https://www.youtube.com/bloomberg