The International Franchise Association (IFA) today released the following statement on the final regulation issued by the National Labor Relations Board (NLRB) expanding joint employment between franchisors and franchisees. Today’s rule defines how brands and owners could be jointly responsible for the same employees under the National Labor Relations Act (NLRA), fundamentally upending the franchise business model. The rule would reduce the independence of franchise business owners, diminish franchisees’ equity in their businesses, and force franchisors to offer less support.
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