I was educated in a public school so forgive my ignorance but what the h3!! does the term “the integrity of the franchise system” mean?
As I understand it, a law to protect texas car dealers. No cars could be sold in texas unless via a car dealer
It means "closed union shop"
In Texas, car manufacturers are not allowed to directly own car dealerships, but must instead offer dealerships to independently owned dealerships in franchise arrangements.
A reason for this would be to avoid unfair competition, where a car company would sell franchises, but later open their own dealership and undercut the independents.
Of course, it also protects independent franchises from competition, and could be considered “anti-competitive”, especially in a case where a particular company doesn’t do ANY franchises.
In many industries and states, independent franchises co-exist peacefully with company-run stores. I believe gas stations are like that, with some owned by the company, and others independents who purchase franchise rights. Same with fast food locations.