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A shot in the arm for franchises

Joe Mont | December 26, 2017

Talk all you want about stock investing, sustainable corporate growth with a long-term view baked in, and the continual quest for job creation and growing GDP. A true engine of brand growth in the United States can be found in the franchise model.

The many fast food restaurants that dot the landscape are just one illustration of a sector that commonly licenses out its name, brand recognition, and certain functionalities. Franchisees find a way to balance national standards and operating procedures with local hiring, permitting, and training.

In a 3-2 decision on Dec. 14, the National Labor Relations Board overruled its 2015 decision related to Browning-Ferris Industries, which could make joint-employer rules less onerous and complex. For franchise operations, this could be a real shot in the arm.

The NLRB declared Browning-Ferris Industries, a California-based recycling company, to be a “joint employer” with Leadpoint, a staffing services company. The decision...

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