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The Feds Could Kill Off The Entire Franchise System, Not Just McDonald's
Forbes ^ | 08/05/2014 | Tim Worstall

Posted on 08/05/2014 10:05:15 AM PDT by SeekAndFind

The National Labor Relations Board (NLRB) made a very strange decision last week to rule that McDonald's MCD -0.23% the corporation, was a joint employer of the staff in the franchised restaurants. It was, of course, at the urging of those labour activists who would like to union organise in the sector.

Dealing with one national company is obviously going to be easier than dealing with thousands of independent business owners. There’s a number of problems with this decision ranging from the way that it overturns what has long thought to be settled law, to it obviating already signed contracts but perhaps the greatest problem is that it calls into question the entire validity of the franchise system.

The CEO of CKE Restaurants (Hardee’s and Carl Jr.’s) has a good piece in the WSJ which points to one very large problem in an economic sense with this decision:

"Imagine the upheaval in the fast-food industry if tens of thousands of restaurants accustomed to operating independently suddenly were forced to work hand in hand with franchisers on every employment-related decision.

Franchisers would have to review countless job applications at restaurants across the country, while consulting on compensation structures and bonus plans at individual restaurants. Franchisers would also have to monitor the franchisees’ workplace and ensure that employees were taking required rest breaks, being compensated for overtime and complying with both federal labor law and the labor laws of each state in which they do business. The companies would also need to administer or dictate employee training, and increase restaurant staffing levels as they, rather than their franchisees, deemed necessary."

And, since franchisers are compensated based on top-line sales, not franchisees’ profitability, they would have little economic incentive to control labor costs. That would hamstring franchisees, endangering their businesses.

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: allpartoftheplan; franchise; franchises; marxism; mcdonalds; nlrb
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To: SeekAndFind

I predicted this. Who in their right mind would buy a franchise under these circumstances?


41 posted on 08/05/2014 11:05:40 AM PDT by Rusty0604
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To: Vigilanteman

Then you have the anti-intellectual radical socialists like Hugo Chavez whose belief is that anyone can do any job and promotes incompetence as a right.

You see how well that turned out.


42 posted on 08/05/2014 11:06:53 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: ameribbean expat

The anti-intellectual communists of Venezuela think anyone can do any job and promote incompetence as a virtue. Now they are led by Marduro who is a former bus driver.


43 posted on 08/05/2014 11:09:19 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: Rusty0604

exactly


44 posted on 08/05/2014 11:10:15 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: Vigilanteman

so....world leaders who were once professors:

- Pol Pot
- Robert Mugabe
- Barack Obama


45 posted on 08/05/2014 11:18:46 AM PDT by Buckeye McFrog
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To: GeronL

Yep. The left is great about attracting fools from both extremes of the spectrum.


46 posted on 08/05/2014 11:19:40 AM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: DBrow

“General Motors Financial receives subpoena from DoJ over subprime loans”

http://www.cnbc.com/id/101884108#.

I thought this was amusing.


47 posted on 08/05/2014 11:20:09 AM PDT by Rusty0604
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To: Buckeye McFrog

Obama wasn’t a professor. He was a “lecturerer”.


48 posted on 08/05/2014 11:20:44 AM PDT by tanknetter
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To: Mr. Jeeves
The big-government/big-corporate crony-fascist complex uber alles.
49 posted on 08/05/2014 11:23:54 AM 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: Red Badger

When I worked for a labor union in CA they were mad as hell when the self checkout was implemented in stores. I told them that with their reasoning, we would still be using operators to connect every time we made a phone call.


50 posted on 08/05/2014 11:33:29 AM PDT by Rusty0604
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To: GeronL

They put politicos in to run their oil company after they nationalized it. That is why they don’t produce as much oil as they used to. They took away the “rich” farmer’s land and gave it to the “poor” and because of that they now have to import food rather than export it.


51 posted on 08/05/2014 11:36:35 AM PDT by Rusty0604
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To: mgist

Excellent reference information.


52 posted on 08/05/2014 11:37:22 AM PDT by tbw2
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To: Rusty0604

They forced the oil company to hire 25,000 or so useless “workers” who just happened to be Chavez supporters. Amazingly the oil sector is losing money, lol.


53 posted on 08/05/2014 11:38:40 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: Patton@Bastogne

“According to the political theory of Marxism–Leninism of the early 20th century, the kulaks were class enemies of the poorer peasants.[3]

Vladimir Ilyich Lenin described them as “bloodsuckers, vampires, plunderers of the people and profiteers, who fatten on famine.”[4][5] “

Yup, the useful idiots that Democrats need to forward their Marxist agenda will be the first ones sent to the camps.” What’s both sad and funny is that libs, not knowing and yet laughing at the governments overreach into our lives will affect them the worst.

In a communist nation, several hundred million guns in the hands of the populace is more terrifying than a bunch of drug addicted, butt munching whiners with daddy issues. The Marxists won’t get to us till last.


54 posted on 08/05/2014 11:39:31 AM PDT by EQAndyBuzz (GM is dead and Al Queada is alive.)
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To: SeekAndFind

We should stop with all of the indpendent tiny little actions and just pass Directive 10-289!

In the name of the general welfare, to protect the people’s security, to achieve full equality and total stability, it is decreed for the duration of the national emergency that:

Point One. All workers, wage earners and employees of any kind whatsoever shall henceforth be attached to their jobs and shall not leave nor be dismissed nor change employment, under penalty of a term in jail. The penalty shall be determined by the Unification Board, such Board to be appointed by the Bureau of Economic Planning and National Resources. All persons reaching the age of twenty-one shall report to the Unification Board, which shall assign them to where, in its opinion, their services will best serve the interests of the nation.

Point Two. All industrial, commercial, manufacturing and business establishments of any nature whatsoever shall henceforth remain in operation, and the owners of such establishments shall not quit nor leave nor retire, nor close, sell or transfer their business, under penalty of the nationalization of their establishment and of any and all of their property.

Point Three. All patents and copyrights, pertaining to any devices, inventions, formulas, processes and works of any nature whatsoever, shall be turned over to the nation as a patriotic emergency gift by means of Gift Certificates to be signed voluntarily by the owners of all such patents and copyrights. The Unification Board shall then license the use of such patents and copyrights to all applicants, equally and without discrimination, for the purpose of eliminating monopolistic practices, discarding obsolete products and making the best available to the whole nation. No trademarks, brand names or copyrighted titles shall be used. Every formerly patented product shall be known by a new name and sold by all manufacturers under the same name, such name to be selected by the Unification Board. All private trademarks and brand names are hereby abolished.

Point Four. No new devices, inventions, products, or goods of any nature whatsoever, not now on the market, shall be produced, invented, manufactured or sold after the date of this directive. The Office of Patents and Copyrights is hereby suspended.

Point Five. Every establishment, concern, corporation or person engaged in production of any nature whatsoever shall henceforth produce the same amount of goods per year as it, they or he produced during the Basic Year, no more and no less. The year to be known as the Basic or Yardstick Year is to be the year ending on the date of this directive. Over or under production shall be fined, such fines to be determined by the Unification Board.

Point Six. Every person of any age, sex, class or income, shall henceforth spend the same amount of money on the purchase of goods per year as he or she spent during the Basic Year, no more and no less. Over or under purchasing shall be fined, such fines to be determined by the Unification Board.

Point Seven. All wages, prices, salaries, dividends, profits, interest rates and forms of income of any nature whatsoever, shall be frozen at their present figures, as of the date of this directive.

Point Eight. All cases arising from and rules not specifically provided for in this directive, shall be settled and determined by the Unification Board, whose decisions will be final.[1]


55 posted on 08/05/2014 11:51:22 AM PDT by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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To: SeekAndFind

This needs to go to court ASAP. They may think they are supreme rulers but our constitution says otherwise.


56 posted on 08/05/2014 12:04:31 PM PDT by tiki
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To: SeekAndFind

How dare franchisees take risks, invest tons of money, and build a business that employs people.

I think it’s time I get out of the aircraft parts, tool and die, and injection mold manufacturing business and start looking in to burger flipping automation.


57 posted on 08/05/2014 12:56:55 PM PDT by Organic Panic
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To: mgist
"That’s a dumb comment. You need to be a little more considerate with the “Latino base” on this blog, like me. I hate McDonalds."

Would you like a tissue? I specifically said "illegal" - do you match that description?

"Our rabid consumption of drugs is what has fueled the cartel’s power..."

Why is it that on the street the pusher is the bad guy and the addict is the victim, but at the national level, pusher nations like mexico are somehow the victims? The pusher countries have no alternatives to joining the drug trade?

58 posted on 08/05/2014 7:14:12 PM PDT by Flag_This (You can't spell "treason" without the "O".)
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To: Flag_This

Oh so you meant “illegals” have taste preferences for McDonald’s, not Latinos. Yup that makes sense.

You need to realize that drugs are simply moving through Central America, and Mexico, the way they pass through the Ukraine into EU.

Their are poor indigenous people with very little education, that are taken advantage of. The same way they are in this country. God loves the least of us, and bottom line, FAT OLD WHITE bankers are behind this evil, and they are going to answer for it.

Our POTUS, the USA is flooding world markets with pure dangerous addictive cheap heroin. We are nobody to point fingers.

Heroin production hits record levels in Afghanistan - study
http://rt.com/news/156128-afghanistan-drugs-usa-heroin/

Drug War? American Troops Are Protecting Afghan Opium. U.S. Occupation Leads to All-Time High Heroin Production
http://www.globalresearch.ca/drug-war-american-troops-are-protecting-afghan-opium-u-s-occupation-leads-to-all-time-high-heroin-production/5358053


59 posted on 08/05/2014 9:00:32 PM PDT by mgist (.)
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To: mgist
"Oh so you meant “illegals” have taste preferences for McDonald’s, not Latinos. Yup that makes sense."

Yo quiero taco bell, man. Yo quiero taco bell. Actually, my flippant remark was more focused on the part of his sentence that mentioned taking away "their jobs" - I don't really care where illegals eat.

"You need to realize that drugs are simply moving through Central America, and Mexico, the way they pass through the Ukraine into EU."

Really? Like cocaine? How many tons of marijuana do you suppose are harvested throughout latin america? The people of those regions are active participants in the drug trade and poor, or not, they have blood on their hands.

60 posted on 08/06/2014 9:53:14 AM PDT by Flag_This (You can't spell "treason" without the "O".)
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