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The Future Of Franchising: Two Evolving Ideas

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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

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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...

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

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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

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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...

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