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February 2015 Archives

Franchises and Joint Employers

The nationally recognized companies McDonalds, Dunkin Donuts, 7-Eleven, Hampton Inn and Subway have built success by franchising their business locations. Individuals and businesses buy the rights and pay royalties to open up a franchise, and in turn share in the benefits of established brand recognition and proven business model. Traditionally, when a franchise location encountered legal trouble, only the licensee of that franchise could be held liable. However, a recent National Labor Relations Board (NLRB) decision issued in December 2014 has demonstrated the potential to change where the liability lies between a corporation and its franchisees.

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