Franchisors

News & Analysis as of

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

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

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

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

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

NLRB Moves Toward New Standard to Hold Franchisors Are Joint Employers of Their Franchisees' Employees

Over the last two years fast-food workers have engaged in walkouts and other activities protesting their wages and seeking an increase to $15/hr. Numerous unfair labor practice charges have been filed with the National Labor...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 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

NLRB Office of General Counsel: Franchisors May Be Liable for Franchisees' Employment Practices

In a decision with potentially far-reaching consequences for the franchise industry, the National Labor Relations Board's (NLRB) Office of General Counsel decided on July 29, 2014, that it will require McDonald's USA, LLC...more

NLRB General Counsel Seeks To Hold Franchisors Liable For Acts Of Franchisees

In a sweeping departure from existing law, National Labor Relations Board (“Board”) General Counsel, Richard F. Griffin, announced yesterday that he will name McDonald’s USA LLC as a joint employer in dozens of unfair labor...more

Belgium: modified rules on pre-contractual information affect franchise agreements in Belgium – existing as well as future

Book X of the Belgian Economic Code concerning agency agreements, commercial collaboration agreements and distribution agreements is now in force. All franchisors will be affected, but those with existing franchise...more

The GPMemorandum, Issue 181

In this Issue: Missouri District Court Awards Attorneys' Fees And Costs In Termination Case: In Dunkin' Donuts Franchising LLC v. Sai Food (ST Hospitality, LLC, 2014 U.S. Dist. LEXIS 67512 (E.D. Mo. May 16,...more

The GPMemorandum, Issue 180

In This Issue: - Franchisor Uses Uniform Domain-Name Dispute-Resolution Policy To Obtain Control Over Infringing Domain: A franchisor whose trademark was being infringed in a domain name recently obtained...more

Are Franchise Agreements Negotiable?

In theory, yes, franchise agreements are negotiable. In practice, they may not be negotiable – particularly in ways that are meaningful. Every franchisor has a form of franchise agreement that defines the rights and...more

Focused on Franchise - April 2014

FRANCHISEE 101: Terminated Franchisee Can Pursue Fraudulent Disclosure Claims - In Solanki v. 7-Eleven, Inc., a U. S. District Court in New York ruled that a terminated 7-Eleven franchisee who decided to purchase a...more

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