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Obama, Unions, Trial Bar Take Aim At Franchise Model
Investors.com ^ | September 19, 2014 | Stephen Moore

Posted on 09/20/2014 3:07:41 PM PDT by jazusamo

If the Obama Administration has its way, Ronald McDonald may soon have to wipe that grin off his face as he stands beneath the Golden Arches. One of the most successful models for expanding small-business ownership in America is under full-scale attack from unions and the White House.

The political strategy is to fundamentally change the legal relationship between locally owned stores like McDonald's (NYSE:MCD), Popeyes (NASDAQ:PLKI), Taco Bell (NYSE:YUM) and their multibillion-dollar parent companies.

No longer would franchisees be legally classified as independent contractors to the parent company. The left wants the employees of each of the hundreds of thousands of independently owned franchise restaurants, hotels, retail stores and others to be considered jointly employed by both the independent franchisee and parent.

This change would overturn a 30-year legal precedent for how the National Labor Relations Board (NLRB) deals with franchisees.

As of now, entrepreneurs can purchase and run their own stores. Likewise, the parent company is sheltered from legal risks associated with the actions on the part of the independent franchisees. Furthermore, regulations such as ObamaCare that apply to large businesses do not affect smaller franchise operations.

With this change, parent companies with deep pockets could also be targets for shakedowns and lawsuits any time that there's a grievance with a locally operated store.

Legal experts worry that the franchising model could become extinct. The stakes are huge because by the end of this year, the more than 770,000 of these independently owned franchise stores nationwide are expected to employ more than 8 million workers.

More than 31,000 automotive businesses, more than 155,000 fast-food restaurants and nearly 90,000 real estate businesses are part of this model.

(Excerpt) Read more at news.investors.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Government; News/Current Events
KEYWORDS: franchises; nlrb; obama; unions
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Criminal behavior by the 0bama/union controlled NLRB, the judiciary had better not let it stand.
1 posted on 09/20/2014 3:07:41 PM PDT by jazusamo
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To: jazusamo
Michael Ignatieff has a piece in the Sept. 25 issue of The New York Review of Books where he quotes Lawrence Summers' description of present-day Russia and China as examples of "authoritarian mercantilism" (combining authoritarianism in political form, capitalism in economics, and nationalism in ideology), but Ignatieff prefers the term "authoritarian capitalism" because of the strong element of cronyism in both Russia and China.

Maybe that should be seen as the goal that Obama is aiming for, to bring about in the US as well.

As Ignatieff points out, there is merely a pretense of the rule of law in Russia and China. That is certainly what Obama and the Democrats are trying to achieve in America.

2 posted on 09/20/2014 3:15:42 PM PDT by Verginius Rufus
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To: jazusamo

Buffet bought Prudential Real Estate. This could turn agents from independent contracts to employees. That would blow up the real estate industry.


3 posted on 09/20/2014 3:18:22 PM PDT by resistance (abandon all hope and rational thought, become a democrat)
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To: Verginius Rufus

I believe it’s definitely the goal 0bama and thugs are aiming for, many things that have taken place point to it.


4 posted on 09/20/2014 3:21:53 PM PDT by jazusamo (Sometimes I think that this is an era when sanity has become controversial: Thomas Sowell)
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To: resistance

I agree. This piece is the best one I’ve read that simply points out the magnitude of this endeavor by 0bama and his union hacks.

Had this taken place under a Republican president there would have been outrage, even from the enemedia.


5 posted on 09/20/2014 3:26:28 PM PDT by jazusamo (Sometimes I think that this is an era when sanity has become controversial: Thomas Sowell)
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To: jazusamo

This absolute *ss-clown of a president simply will not rest until the economy of the United States lies in ruins.

There’s something seriously wrong with the way his mind works.


6 posted on 09/20/2014 3:26:45 PM PDT by Jack Hammer
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To: Jack Hammer

There are even Freepers who think it is the employees who build these companies, and should have ownership.


7 posted on 09/20/2014 3:28:49 PM PDT by Balding_Eagle (If America falls, darkness will cover the earth for a thousand years.)
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To: jazusamo
If they could unionize all fast food workers and all Walmart workers the Democrats would be rolling in union-dues dough!

Obamacare already unionizes sixteen million health care workers, so all those dues will be funneled to them soon, too!

8 posted on 09/20/2014 3:32:50 PM PDT by E. Pluribus Unum ("The man who damns money obtained it dishonorably; the man who respects it earned it." --Ayn Rand)
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To: Jack Hammer

Well said...I fully believe that his and his handlers intentions.


9 posted on 09/20/2014 3:32:57 PM PDT by jazusamo (Sometimes I think that this is an era when sanity has become controversial: Thomas Sowell)
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To: Balding_Eagle

Pretty much what Lenin said.


10 posted on 09/20/2014 3:33:07 PM PDT by Jack Hammer
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To: jazusamo

And if three-fourths of them go out of business, so much the better!


11 posted on 09/20/2014 3:33:25 PM PDT by E. Pluribus Unum ("The man who damns money obtained it dishonorably; the man who respects it earned it." --Ayn Rand)
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To: E. Pluribus Unum

Yep, union money is Rat money and they’re after all they can get and don’t care who knows it.

It’s pathetic the way Trumka was hanging out at the White House, he and 0bama care not how flagrantly corrupt that is.


12 posted on 09/20/2014 3:38:47 PM PDT by jazusamo (Sometimes I think that this is an era when sanity has become controversial: Thomas Sowell)
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To: Jack Hammer
hes an opportunistic narcissist and a National Socialist...perhaps the most empty headed greedy twisted National Socialist ever

someone fed him this grand scheme....


13 posted on 09/20/2014 3:43:26 PM PDT by MeshugeMikey (Please RESIGN Mr. President Its the RIGHT thing to do_RETIRE THE REGIME!)
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To: jazusamo

Rusho said it: Obama is going through the American economy like Godzilla went through Tokyo.


14 posted on 09/20/2014 3:45:01 PM PDT by sauron ("Truth is hate to those who hate Truth" --unknown)
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To: jazusamo

ONE BIG STEENKING RAT here. I recall reading the Unions are exempt in the bill they are pushing for minimum wage of $15.00 per hour for service workers. IF that IS true then the unions will clean house as IF this NLRB mandate, this decision by the NLRB becomes law then the franchisees will be out as there would be no point in franchises, and the Parent companies would choose to go union rather than pay the $15.00 hr. otherwise mandated wage.

Another gratuity from the Democrats, and the Obama Administration to their loyal union supporters is what I see here.


15 posted on 09/20/2014 3:57:34 PM PDT by rockinqsranch ((Dems, Libs, Socialists, call 'em what you will. They ALL have fairies livin' in their trees.))
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To: rockinqsranch

You see it right. The union leaders and 0bama could care less about workers and that includes union workers, they care about the money.

I also read that the unions are exempt in the $15.00 minimum wage bill they’re pushing. This kind of stuff blows my mind, it’s out and out corruption.


16 posted on 09/20/2014 4:08:54 PM PDT by jazusamo (Sometimes I think that this is an era when sanity has become controversial: Thomas Sowell)
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To: rockinqsranch

Not just payback to the unions; where do you think the Democrats get a large part of their contributions from? They are securing money for future elections, much of which on the backs of people who hate them but have to pay dues.


17 posted on 09/20/2014 4:10:28 PM PDT by Ancesthntr ("The right to buy weapons is the right to be free." A. E. van Vogt)
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To: jazusamo
Had this taken place under a Republican president there would have been outrage, even from the enemedia.

No, there wouldn't.

Democrats would say that it doesn't go "far enough," then the Republican will compromise and get blamed for it when things go as expected.

18 posted on 09/20/2014 4:43:38 PM PDT by Extremely Extreme Extremist
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To: Ancesthntr

I am humbled by your brilliance.


19 posted on 09/20/2014 5:08:38 PM PDT by rockinqsranch ((Dems, Libs, Socialists, call 'em what you will. They ALL have fairies livin' in their trees.))
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To: jazusamo
No longer would franchisees be legally classified as independent contractors to the parent company.

They're NOT independent contractors to the parent. That's absurd. They're CUSTOMERS of the parent. Money flows from the franchises to the parent. In return, the company provides a store license (and sometimes physical location), a recognizable brand, advertising, ingredients and so on. It's a little different from a normal vendor-customer relationship, but that's the basis of it. It's beyond ludicrous to say the franchise owners are contractors to the parent.

Of course that makes Ebola and the NLRB look even more ridiculous (if that were possible), so this rational viewpoint will never see the light of day.

20 posted on 09/20/2014 5:41:43 PM PDT by Still Thinking (Freedom is NOT a loophole!)
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