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 ...
And so goes the last affordable meals in America. Sad. And doubly sad for the millions of teenagers who first learn to say “Yes sir” to a boss they hate in places like this.
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“And doubly sad for the millions of teenagers who first learn to say “Yes sir” to a boss they hate in places like this.”
That’s been gone for years.
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