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 ...
Maybe this is part of Michelle’s plan to take down the fast food industry.
“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.”
And that’s the name of that tune with Mitch Boehner.
Thanks, I did. It know about this. Similar to the proposals for sales tax on internet purchases but no exemptions for small business.
How right you are.
I was maddened and sickened by what Obama did with GM. Tore up hundreds of years of contract law in this country, I couldn’t believe he got by with it.
They ruled that a company that contracts or franchises out can be considered a joint employer of the employees of the contractors and franchises. The labor unions pushed for this.
Dumb...Depressed...Decadent…Dependent...AND...Democrat...
If you buy a few McDonald’s you ARE a small business and you are the one that makes or loses the money. Maybe I misread you post, but I took it that you think people just open up a small business to avoid regulation. Is so much regulation a good thing in your opinion anyway?
Rusty thanks, yes Contract Law is the main point, I got a bit long-winded. Heck I think he went back to the Manga Carta he did so much flippin damage...
Contractors too, so if you contract out your janitorial or driving work it would affect that.
No, we have too much regulation.
OK, good to know you agree.
NLRB Nanny State PING!
Assholes. They act as if their fevered imaginings have some connection with reality and as of we’re supposed to care what they “think”.
bflr
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