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The Future Of Franchising: Two Evolving Ideas


Two recent articles from Down Under propose some new paths for the evolution of the franchise business model. First is an analysis in the Wall Street Journal from two academics at the University of Sydney Business School. Under the headline “Why the Future Franchise Will Look Nothing Like Today’s.” In it, the authors propose the concept of “quasi-franchising” to combine...

Lawsuit May Test McDonald’s ‘Joint-Employer’ Franchise Designation


A new wrongful-termination lawsuit brought by 10 former McDonald’s workers in Virginia may test last year’s efforts by the National Labor Relations Board to classify McDonald’s corporate entity as a “joint employer” responsible for its franchisee’s local operations. One former NLRB member has said that the NRLB’s “joint employer” designation was...

Franchise Industry Expects To Grow Faster Than U.S. Economy in 2015


Franchise businesses are expected to grow and create more jobs at a faster pace than the rest of the economy in 2015 for the fifth consecutive year, according to the International Franchise Association’s annual Economic Outlook report for 2015. But worries about Washington changing federal regulations continue to dampen the industry’s outlook, and could hold back the pace of growth...

Feds Push on Franchise Model as NLRB Proceeds with McDonald’s Joint Employer Complaints


The National Labor Relations Board has followed through on its warning to McDonald’s, and has named McDonald’s a “joint employer” as it issued unfair labor practice complaints in 43 cases against McDonald’s franchisees and their franchisor, McDonald’s USA, LLC. In response to the NLRB’s actions, McDonald’s said the ruling strikes “at the heart of the franchise system—a...

Franchise Industry Asks NLRB To Disclose Its Joint-Employer Reasoning


The International Franchise Association says it has asked the National Labor Relations Board to disclose how it concluded that franchisors could be considered joint employers in labor disputes at local franchise locations. An NLRB memo earlier this year warned McDonald’s that it could be jointly liable with local franchise owners if labor disputes at some locations were not resolved. Since...

Calif. Vetos Franchise-Dispute Bill, Upholds the Franchise Model


California Governor Jerry Brown has vetoed a bill intended to give franchisees a stronger position in dealings with corporate franchise systems, ending a legislative battle that fostered surprising alliances between the franchising industry and unions. The bill sought to prevent franchisors from using minor infractions to force franchisees out of their businesses, as 7-Eleven store owners have...

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