62 Business View - January 2015
8. Local, state, and federal govern-
ment “interference” will continue to
be a challenge for franchising and
small business.
Over the past 10 years, there has been more interest
in the franchise industry by government and regula-
tory groups. In response the International Franchise
Association, which represents 1,450 brand compa-
nies and 17,000 local franchise business owners, has
assembled a powerful team of labor and employment
experts whose sole purpose is to ensure that the fran-
chise industry is not negatively impacted as a result.
Its newest teammember, Elizabeth Hays Taylor, served
as chief counsel for the Senate Judiciary Committee
Subcommittee on Privacy, Technology and the Law.
There are three issues in the spotlight at the moment.
Who will employers be, franchisees or franchisors?
Since the National Labor Relations Board decided to
name McDonald’s as a joint employer in 43 cases, this
question is on many people’s minds. The biggest con-
cern regarding the NLRB’s ruling is that it could lead
to franchisors who have involved themselves with em-
ployment concerns on the franchisee level to be des-
ignated a joint employer as well. This would result in
their having to take control over employment issues
that have traditionally been the concern of franchi-
sees, essentially turning franchisees into company
employees. Most systems have since their inception
left employment issues in the hands of their franchi-
sees and those who have endeavored to become more
involved with them are changing their policies. As a re-
sult it is likely that the NLRB will it increasingly difficult
to name franchisors as joint employers.
Union-backed worker strikes and protests by employ-
ees of fast food and other franchises who are seek-
ing a $15 hourly minimum wage, over double the fed-
eral level of $7.25, have some franchisees on edge.
In response, they are making an effort to show their
workers that they are small business owners. The In-
ternational Franchise Association is launching a web-
site and hotline to help franchisees to appropriately
FRANCHISE
