​In recent years, labor law has protected corporate franchisors from liability for practices at individual franchise locations. But that changed on October 26, when the National Labor Relations Board (NLRB) broadened the definition of a joint employer, deciding that both franchisors and franchisees can be held liable for unfair labor practices.
Under the new definition, the NLRB will consider franchisors and franchisees joint employers if each has “an employment relationship with the employees” and “share or codetermine one or more of
the employees’ essential concerns or conditions of employment.” For example, franchisors will become joint employers if they have the potential to influence activities including:
· Setting wages, benefits or other compensation
· Scheduling and hours worked
· The assignment of duties
· Supervision of duties being fulfilled
· Defining job responsibilities and how they’re fulfilled, as well as disciplinary practices
· Hiring and firing
· Conditions of the workplace
The National Restaurant Association has expressed concern that as a result of this change, corporate restaurants could face lawsuits and be held accountable for risks outside of their control – such as a manager not paying overtime or a franchise employee harassing a coworker. It could also make it easier for franchises to unionize and organize when negotiating with their corporate parent. Unless the rule is rejected during the congressional review process, it will take effect on Dec. 26.

​Even if you’ve never watched an episode of the television series “Succession,” you’re likely aware of the kinds of conflicts that can arise around succession planning for a business. Despite that awareness, however, succession planning is a task that business leaders often neglect. According to research from AIIR Consulting, only 35 percent of organizations have a formalized succession planning process for key roles. As a result, more than 74 percent of leaders say they feel unprepared and lack training for the challenges they face in their roles.


Christopher Flis, a certified financial planner and Burger King franchisee, understands the risks that can accompany a lack of planning around business succession. In remarks at the annual Restaurant Finance & Development Conference in Las Vegas this month, Flis shared his own story, in which his parents died unexpectedly, leaving their franchisee operations to Flis and his brother well before they anticipated it happening. “Our succession plan, which we thought was going to be some years in the future, snapped into place,” Flis said, as reported in Franchise Times.


Looking at your own business, do you have a thorough continuity plan that will provide a blueprint for people to operate the business in the absence of key leaders? Your succession plan should outline how power will be transferred and to whom, what accounts are available to fund that transfer, and how to access critical information about the company’s finances and other details pertaining to day-to-day operations.