from the boy not smart enough to understand the business model of a lemonade stand...
Posted on 08/29/2015 8:04:06 AM PDT by Rusty0604
The National Labor Relations Board (NLRB) just issued a ruling likely to destroy the franchise business model.
To understand how far-reaching this could be, it should be noted that almost 9 million Americans work at over 780,000 franchised businesses.
From Jiffy Lube to Terminex to Wendy’s, franchises enable many Americans to run their own small businesses without having to design and market everything from scratch. Franchising is a particularly important opportunity for minority entrepreneurs.
Franchises are almost 50 percent more likely to be minority-owned than non-franchised businesses. If this ruling stands, minority Americans won’t get that chance.
The recent ruling will probably force local franchises to give up total control of day-to-day business decisions to their corporate sponsors, turning thousands of investor entrepreneurs who currently own and manage a local business into middle managers in a giant corporate entity.
Until now, the NLRB has always defined an employer as the firm that hires, fires, pays wages, disciplines, promotes, and makes work assignments. That’s just common sense and comports with most Americans’ understanding of whom they work for.
The NRLB is now saying that companies that contract with others firms for services or set quality standards in exchange for brand licensing implicitly influence the other firms’ employees and should be required to bargain collectively with them.
If allowed to stand, this new interpretation will effectively destroy the franchise model of business.
(Excerpt) Read more at dailysignal.com ...
I hear yet another yawn from the GOPe...
I suspect a payoff to the unions for their support, not so much payoff to big business. But it smacks of being a two-fer.
I’m sure it will be taken to court and it is clearly a violation of franchise contract law, but I don’t trust the court system on anything. I certainly hope it is repealed by the next administration but won’t be if a democrat is in office.
This is another example of these massive activist bureaucracies furthering their own agendas. They need to be cut down to size or eliminated.
They sure don't want people to leave the plantation.
More of a payoff to unions instead of big business.
How to explain the issues involved here could be a challenge.
I don’t think many people understand, or care, that their local McDonald’s or Wendy’s is a franchise. And too many people may not understand the legal implications of the connections between franchises and the corporate level.
There isn't a single aspect of life that the obama regime isn't out to control.
Mark
There isn't a single aspect of life that the obama regime isn't out to control.
Mark
From a franchise forum:
“The NLRB has stepped into an interesting posture. As an administrative agency, they are actually overstepping their bounds by defining what are the requirements of brand protection as exercised since 1947 by the Lanham Act and enforced by a different agency of the government. In a more routinely run Congress and administration this would not be an issue because Congress would immediately step in and put a stop to their over reach on their authority. With this Congress and administration I doubt that will happen.”
http://bluemaumau.org/node/14652/talk
Importantly, the EU has just started a major program that is wiping out thousands of small businesses.
Which makes me wonder if there is some coordination by the internationalist socialists in this?
Importantly, small businesses employ most of the employed people in countries, so the immediate fallout in both the US and the EU is higher unemployment.
What is the EU program?
from the boy not smart enough to understand the business model of a lemonade stand...
I won't say I stood alone during the GM bankruptcy, but I may have been the 1st too point out. And that was, all the facets of that bailout as it "transformed" bankruptcy laws, and how screwed with franchise law which if I am not mistaken it is a State related issue, not federal.
GM was the template for everything going forward with team Obama, and it as a vehicle ( no pun intended ) and doesn't get the examination it deserves.
More importantly, I think Obama is trying to negate any intrinsic asset or capital the middle class has in an almost silent ku type fashion, but is brutal if you look under the surface. The destruction of Coal effects the shareholders of those industries and especially those seniors living off Utility Dividends. He wants to shut it all down. The Franchise model, anyone who takes a risk and becomes part of "that team" ( much like owning dividend stock, but with more work ) gets beeotch slapped.
He wasn't kidding when he said "you didn't build that" his centricity is it is all about the State, come to us for any decision, we have to bless it. Dysfunctional Control Freaks the whole Bamn Dunch of them...
The question begs, does Donald or whom ever is POTUS have the cohones to turn this all back and will we still have those two Gelded Weasels, The crying Cheeto and Turtle-Boy still running the show, because if we do ugatz will get done...
B@$ta@Rd$, I didn't even think of that, these people are truly evil...
10 Sentences in and the article still hadn’t said what the ruling is. Typical emotionally driven article that wants to explain its answer before ever giving the answer.
Yeah we were looking into opening a Chick fil a.
This is over reach! “Pursuit of Happiness” not with these flipping sickos!
How does this effect Chick-fil-a? They are are sort of a psuedo-franchisor.
That might actually be the intent, to force millions of people into regulation who currently avoid it by being classified as small businesses.
If they get on with MCD’s which isn’t even the top fast food joint in the US anymore, then they’ll go after #1 as well.
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