Franchise Best Practices

Why Franchisors Fear The Joint Employer Lawsuits

When the National Labor Relations Board decided to consider McDonald’s a joint employer of all workers within the franchise, fears spread like wildfire. This ruling meant that any McDonald’s employee was considered jointly employed with the McDonald’s franchisor, even though individual franchisees hired the employees. So if a problem came up like injustice in the hiring or firing department, complaints could go all the way up to the top.

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How To Avoid McDonald’s Fate in the Franchise Market

As you may have heard, McDonald’s is under some scrutiny right now regarding its hiring and firing practices. The reason it’s notable is because the McDonald’s franchisor is being pointed at for these mistakes, even though the issues lie within the individual franchisee’s actions. So how can the franchisee place the blame on the franchisor?

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