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“The truth is that franchises like Subway and McDonald’s really are not very good for our local economy.”...WTH???

9/20/2014

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If the Obama Administration has its way, Ronald McDonald may soon have to wipe that grin off his face as he stands beneath the Golden Arches. One of the most successful models for expanding small-business ownership in America is under full-scale attack from unions and the White House.

The political strategy is to fundamentally change the legal relationship between locally owned stores likeMcDonald’s (NYSE:MCD), Popeyes (NASDAQ:PLKI), Taco Bell (NYSE:YUM) and their multibillion-dollar parent companies.

No longer would franchisees be legally classified as independent contractors to the parent company. The left wants the employees of each of the hundreds of thousands of independently owned franchise restaurants, hotels, retail stores and others to be considered jointly employed by both the independent franchisee and parent.

This change would overturn a 30-year legal precedent for how the National Labor Relations Board (NLRB) deals with franchisees.



Read the rest here...
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