September 3, 2015

National Labor Relations Board Franchise Decision

A few have asked why there's been no discussion here about the NLRB ruling.
I have no good answer except the board's position on the franchisor/franchisee
relationship is so far from reality it's difficult to discuss.

Keep in mind, this isn't about McDonald's, it's about all franchised business. Like
minimum wage increases such rules and laws won't just apply to quick service 
resaurants but would impact muffler shops and haircut chains. If left to stand this
would effectively put most franchise chains out of business. Since the corporate 
side is the deep pocket they'd be responsible for everything that happens to a 
franchisee's employees. Not even McDonald's could afford to pay that bill.

Under those conditions why would any company sell franchises? Given the chance
of having their business unionized, why would any person buy a franchise?

We can expect a battle royal in the courts and in congress and it's probably going to
happen very quickly. But this will actually be decided in the 2016 election. 

Here's an interesting article sent in by a McDonald's Operator:

How to fix regulation without representation | TheHill

Here's an excellent opinion piece on the ruling:

 How This New Government Ruling Destroys the Franchise Business Model
.

2 comments:

Anonymous said...

Why would the NLRB think that McDonald's has total control over it's franchisees/operators.....let's see: they own the land, the building; control growth and rewrite policies and implemented the Plan to Win: People, Place, Promotion, Price and Product. Now does that sound like "total" control to you?

Anonymous said...

The Corporation has so emasculated and hogtied the operators that the sad truth is WE WORK FOR THEM.