Odd Lots · Friday, July 24, 2026
Brian Calachi draws a direct line from the legal strategies employed by early franchisors to the operational models of modern gig economy platforms like Uber and Amazon. He argues that the franchise model's success in creating legal loopholes for control without liability paved the way for companies to exert similar control over independent contractors in delivery and ride-sharing services.
“The problem is not that there's innovation, that there's control. That's what a firm is, That's what a corporation is is. You know, markets shouldn't do everything. Sometimes having a little central planner, you know, a mini central planner, you know, coordinating activity is a great thing for you know, getting more efficient and innovating. So we should have that. The problem is then you can't avoid the obligations and liabilities and risks that go with owning assets and employeing workers.”
“And we used to have, you know, our whole legal architecture for regulating and holding these companies accountable was based on that like archetype. You know, we pretty much only our wave of regulation. It was like nineteen thirty five, you know, to the mid nineteen sixties, and we know what a company. It's a it has a smoke stack, it employs a bunch of workers, it owns a factory. Like that's what that's what a company is. Now with all of these you know, and partly due to franchises creating this loophole, it's no longer so clear what an employer is.”
“And all I I would propose we do is, well, hey, if you want to direct to control the work of these drivers, well look you're their employer. And if you're not paying them the you know, the legal wages, or if they want to bargain with you for a union, or if you know, because of you, because of your algorithm, they ran a red light and hit someone, that's those are all those things you caused.”