- Joined
- Jul 7, 2015
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Here is the deal. Great thread. This needs discussion. I own two franchises in the largest geriatric non medical homecare system in the country. Across the country there are over 400 franchises in this system. Here's how franchises work:
1. You open your own business with the rights to use the branding and operational advice provided by the franchisor.
2. You pay the franchisor a percentage of your sales in addition to the initial franchise fee.
3. Then YOU start with YOUR MONEY from ZERO CLIENTS and build YOUR BUSINESS.
4. YOU are on the hook 100% for liability and wage claims.
5. YOU are on the hook to pay for everything related to your business.
6. The franchisor can NOT tell you what do do in the running of your business, except that they can set standards for the way their logos and intellectual property are used and they require reporting in various areas that they use to ensure you are paying them properly and for industry research.
How, then, could my business be considered to be a satellite office of the franchisor corporation? They don't own or control my business. They don't pay me. I pay them. All of our leases are in my name. All of our payroll is my obligation....
One of the reasons they want to do this is that they want to consider the franchise system as a huge multinational corporation and expect us to operate as if we were. However, we are small businesses. We don't have the money that those large corporations have.
This is a huge deal for all franchise systems and is an attempted power grab by the democrats and the NLRB.
Lots of hysteria in this response. Perhaps you should consider that relying on employee abuse isn't a valid business model.