December 19, 2014
Atlanta, GA – The National Labor Relations Board General Counsel has proposed a new rule that has the potential to destroy the current franchise system in America. As part of its complaint against McDonald’s, the General Counsel of the NLRB is calling franchisees and the parent company “joint employers”—a major shift in employment and contract law. The Job Creators Network (JCN) is vowing to fight this decision. If this principal is upheld by the NLRB and in federal court, it would change the basic relationship between franchisees and franchisors, make new franchises harder to start and more expensive to run.
“This decision turns existing franchise laws upside down,” said JCN CEO Alfredo Ortiz. “This will hurt existing business owners and anyone who has ever dreamed of opening their own franchise. Even worse, this NLRB decision will disproportionately hurt minority business owners who represent 20% of all franchisees.”
Ortiz continued, “JCN and its members are completely opposed to this change and will fight these efforts by the NLRB. Unelected bureaucrats shouldn’t be able to kill the American Dream for millions with the simple stroke of the pen.”
The franchise system is responsible for starting more than 825,000 businesses in the United States and supports more than 18 million jobs. JCN has created a short video that explains how the NLRB decision could affect the franchise system. The video can be seen here: