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Uber then withholds 20%—that’s $2—and deposits $8 into the franchisee account. Traditional franchise agreements, in many cases, would treat that $10 as the base figure for calculating royalties.

There has not been an existing franchise agreement since 2009. In 2000, City Council adopted an ordinance that granted El Paso Electric a seven-year franchise agreement, with a two-year extension.

The franchise operator also refuses to keep all stores open until 10 p.m., with many closing by mid-afternoon. Hardee’s claims that these refusals violate system standards and justify termination.