What Resources are Available for the Franchise Industry to Combat the NLRB

By Adam Robinson,
February 20, 2015

What Resources are Available for the Franchise Industry to Combat the NLRB

By now, most of us in the franchise sector know or have heard about the National Labor Relations Board (NLRB) potential new ‘joint employer’ standards. The International Franchise Association (IFA) along with many other organizations have been petitioning against the NLRB and creating numerous documents aiming to inform franchise owners and franchisees about which direction the NLRB is likely headed.

The NLRB is stating that franchisors are joint employers of franchise employees. If franchisors were to be considered joint employers of franchise employees it would put responsibility on the franchisor to manage, monitor and control activities of workers at all locations. This would take away the rights of franchisees to independently run and operate their own businesses, which is why a lot of individuals have gone into franchising.

If the NLRB does decide to consider franchisors joint employers, there will be many effects on franchising jobs and the economy.

  • Fewer New Locations Will Open: Individuals turn to franchising to become entrepreneurs and it allows the ability to independently operate their own business. If this control is taken away, fewer franchised businesses are expected to open.
  • Fewer Jobs Will Be Created: With fewer franchise locations available there will be fewer jobs created.
  • More New Locations Will Be Corporate-Owned: Larger companies and brands will begin to open more corporate locations instead of independently-owned franchise locations, which will reduce local opportunities.

The NLRB’s potential decision would undermine the franchise business model immensely. Although, this information may sound depressing and gives you no hope for the future, there are copious amounts of resources out there to help combat the NLRB’s decision.

  • Franchise Action Network (FAN):  The FAN works with locally owned franchises to seek and create jobs, as well strengthen the American economy. FAN has been a huge advocate about putting an end towards the NLRB ruling.

‘Through the FAN, we will unite all of our voices with a consistent message and engage in the debate to protect our stake in the industry. By speaking with decision makers involved in this debate, we can aggressively work to change this ruling through educational and legislative strategy,’ said FAN on their website.

  • International Franchise Association: The IFA’s official website, Franchise.org is dedicated to providing all of the information one could ask for when it comes to franchising. The website offers detailed information for over 1,300 franchisees, complete list of subject matters and a comprehensive library of franchising information available. The IFA has created many press releases regarding the NLRB ruling which franchise owners and franchisees can review to gain a better understanding of the ruling and how it may impact their futures. 

  • Hireology: Whether the NLRB ruling goes in favor of the franchise owners or the franchisees, our hiring platform can help. Our data-driven selection management platform can help both franchise owners and franchisees hire the right person for their business. Franchise owners will be able to use the platform to create a consistent hiring process and reduce any legal issues that may arise. Franchisees will be able to use the franchise hiring system to hire the right people, increase revenue and success.

So if you’re concerned about what the future may hold once the NLRB ruling has been made, consider visiting the websites listed above to learn how to prepare yourself no matter what the outcome may be. To learn more about the NLRB, check out our newest eBook !   




About the Author

Adam co-founded Hireology with the mission to help growing companies make better hiring decisions through data and better technology. Adam is passionate about entrepreneurship, donating time to a number of organizations that support the entrepreneurial cause. Adam completed his undergraduate study at the University of Illinois at Urbana-Champaign, and received his MBA from DePaul University in Chicago, IL.

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