Franchise Operations
Franchises and Noncompete Clauses
Do the franchise businesses you’re thinking about buying into include non-compete clauses in their contracts? A non-compete clause places legal limits on the kind of work those who sign it can do. For example, an auto service franchise might require franchisees to agree that they cannot open another auto service…
Who’s the Boss (of Your Franchise)?
The National Labor Relations Board declared earlier this year that a franchisor and franchisee could be considered “joint employers” and share the responsibility for treatment of workers, as well as the potential liability. Legal cases around the country have been bringing that issue to the attention of franchisors and franchisees…
Can You Build a Franchise Without Employees?
Employees are high on most lists of business owners’ concerns, whether they own a franchise business or some other kind of company. Look at all the issues that come with employees: Recruiting qualified workers often involves placing and paying for ads, maintaining “Careers” pages at a website, or actively networking…
How Franchises Use Habits
The Power of Habit, by Charles Duhigg, reports on recent research on habits in humans. It turns out that the basal ganglia, a primitive part of the brain, controls habitual behavior. Human beings following a habit are just like rats who’ve learned to get through a maze quickly and find…
Franchisees, Employees, and the Law
A former McDonald’s franchise employee, Natalie Gunshannon, is suing a franchisee for paying workers with a precharged debit card — and failing to offer any alternative. It seems like a convenience for the workers, but the card has fees associated with normal activities like withdrawing money, checking the balance, and…
Franchisees Running “a Modern Plantation System”?
7-11 has announced a widespread internal review of workers at its 5,600+ franchises, following a federal investigation into what prosecutors described as “a modern plantation system.” Undocumented workers from Pakistan were given stolen identities, including Social Security numbers. The identities were taken from people who were deceased and in at…
If You Own a Franchise – Its The Little Things That Can Come Back To Haunt You
BY BILL BRADLEY | August 07, 2012 If you’re thinking about buying a franchise or you already own one, understand it’s the little things that can come back to haunt you. Tiny changes over time can most definitely make a big difference. A car that is going five miles an…