Franchises

News & Analysis as of

NLRB is Poised to Find "Joint Employer" Relationships Just About Everywhere

As we have previously reported, on July 29, Richard Griffin, General Counsel of the National Labor Relations Board, announced his intention to charge McDonald's USA, LLC, as a "joint employer" with its franchisees in a series...more

National Labor Relations Board’s Threatened Expansion of Joint Employer Doctrine Would Increase Employment Law Risks for US...

To bring their full financial and operational expertise to portfolio companies, private equity firms frequently adopt an active approach to overseeing their investments. However, the greater a firm’s involvement in the...more

Focused on Franchise Law - August 2014

FRANCHISOR 101: NLRB McDonald's Ruling May Put Crimp on Franchising - On July 29, 2014, the general counsel of the National Labor Relations Board (NLRB) stated that McDonald's could be held jointly liable with its...more

Would You Like Fries . . . and an Unfair Labor Practice Charge with That?

Mainstream media, attorneys, and business owners are discussing the meaning and impact of a two paragraph press release issued on July 29 by the Office of the General Counsel of the National Labor Relations Board (NLRB). That...more

Activity Before NLRB and WA Supreme Court Highlights Joint Employer Risk

A recent announcement by the National Labor Relations Board’s (NLRB) General Counsel and a Washington Supreme Court decision underscore the risks of potential joint employer liability...more

Big Mac Attack: Is the Franchisor a Joint Employer?

On July 29, 2014, the National Labor Relations Board (“NLRB”) issued a brief statement that could turn labor law in the world of franchising upside down. The NLRB’s General Counsel stated that it plans to go forward with a...more

Fifth Circuit Protects Franchisors, For Now

In the wake of the National Labor Relations Board General Counsel’s announcement that he intends to pursue unfair labor practice charges against a franchisor, franchisors are on high alert. With the NLRB considering an...more

Two All-Beef Patties, Special Sauce, Lettuce, Cheese, Pickles, Onions, on a Sesame Seed Bun – NLRB Rocks Franchise World by...

The National Labor Relations Board is attempting to expand the reach of the National Labor Relations Act once again – this time the NLRB’s Office of the General Counsel authorized formal complaints against McDonald’s USA,...more

Food, Folks, and Franchise-Wide Liability: NLRB Signals Intent to Pound Square Joint Employer Peg Into Round Franchise Hole

A big part of what makes the franchise model of business attractive to small business owners is the opportunity to own and operate their own business, but with their entrepreneurial risk backstopped by a known regional or...more

The GPMemorandum, Issue 183

In This Issue: - Fourth Circuit Upholds Summary Judgment For Manufacturer In Exclusive Dealing Case: Despite being one of two manufacturers that control 99% of the market, E.I. DuPont de Nemours and Co. has...more

The GPMemorandum, Issue 182

In This Issue: - Supreme Court Holds Company Can Sue Competitor For Unfair Competition Even If It Complies With FDA Labeling Regulations: In an 8-0 decision announced on June 12, 2014, the Supreme Court held...more

Update on Orozco v. Plackis: was franchisor’s principal the employer of franchisor’s employee? Fifth Circuit reverses – 3...

We reported in September 2013 about Orozco v. Plackis, a case out of the United States District Court for the Western District of Texas in which the plaintiff (a cook in a franchised restaurant) filed an action under the Fair...more

Mister Softee vs. Master Softee: Non-Compete & Trademark Ice Cream Fight in the SDNY

Dimitrios Tsirkos first became a Mister Softee franchisee in the mid 1980’s. To be clear, we are talking about the ice cream truck business. Over the years, Tsirkos entered several franchise agreements with Mister Softee and...more

NLRB Challenges Franchise Model in Complaint Against McDonald’s

Last week, in an unprecedented shift away from long-standing Board precedent, Richard F. Griffin, Jr., General Counsel of the National Labor Relations Board (NLRB), asserted that McDonald’s, USA LLC (McDonald’s USA) — the...more

Health Care Franchises Paving The Way For The Growing Health Care Market

Health care is one of the largest and fastest growing industries in the US today. With the implementation of the Affordable Care Act (ACA), the demand for health services will dramatically increase. Health Care Franchising...more

Employer Identity Crisis: NLRB's GC Dramatically Expands Joint Employer Doctrine to Include Franchisors

Employer Status for Franchisors - Franchisors typically do not control hiring discipline, termination, or other employment decisions made at locations operated by independent franchises. Can they nonetheless be...more

NLRB Will Charge McDonald’s as “Joint Employer” For Franchisee Labor Violations

In a move with far-reaching ramifications for all businesses that license their brands to independent contractors including franchisees, the National Labor Relations Board (“NLRB”) announced on July 29, 2014 that it has...more

Franchisors Not Lovin’ It: NLRB Announces McDonald’s Named Joint Employer with Franchisees

On July 29, 2014, the National Labor Relations Board (NLRB) Office of the General Counsel announced that McDonald’s, USA, LLC will be named as a “joint employer” in at least 43 cases alleging unfair labor practices against...more

NLRB Lawyers Declare Franchisor to be Joint Employer

Last week, the National Labor Relations Board’s general counsel announced its position that McDonald’s Corporation can be considered a joint employer with its franchisees for purposes of unfair labor practice claims. This...more

The Potential Impact of the NLRB’s Position that McDonald’s and its Franchisees are “Joint Employers”

The National Labor Relations Board created a stir last week when it announced that it intends to hold McDonald’s USA responsible for its franchisees’ violations of employment law. The announcement has created concern and...more

Some Days, A Stay Is Easier to Obtain Than Others

In A&F Enterprises v. IHOP Franchising LLC, 742 F.3d 764 (Seventh Cir. 2014), Chapter 11 debtors appealed a determination that their building leases were deemed rejected because they were not timely assumed. Both the...more

NLRB General Counsel Office: McDonald's, USA, LLC and Its Franchisees Are Joint Employers

The National Labor Relations Board Office of Public Affairs announced on July 29, 2014 that the General Counsel of the National Labor Relations Board has authorized complaints against McDonalds, USA, LLC (McDonald's) and...more

The Attack On Franchising: An Analysis

General Counsel for the National Labor Relations Board and former General Counsel for the International Union of Operating Engineers, has decided to assert that McDonald's Corporation and its franchisees are "joint...more

NLRB to McDonald’s: Not Lovin’ It

In a breathtaking announcement issued on July 29, 2014, the Office of the General Counsel of the National Labor Relations Board has authorized the issuance of complaints against McDonald’s USC, LLC in at least 43 unfair labor...more

NLRB General Counsel Announcement on Joint Employer Status for Franchisors Could Have Significant Implications

In a move that could have a dramatic impact on numerous businesses across the country, National Labor Relations Board General Counsel Richard Griffin announced on July 29, 2014, that his office intends to name a parent...more

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