|Protesters outside of McDonald's Oak Brook, Ill. HQ,|
20 May 2014. (© Fast Food Forward)
McDonald’s is facing more problems … and I’m not referring to their relatively disappointing revenue performance. Or their ill-considered sponsorship of VH-1’s absurd time-slot filler Dating Naked.
No, the new problem is that, on Tuesday, the National Labor Relations Board ruled that the Golden Arches could be named as “joint employer” in a number of workers’-rights complaints against franchise-owned stores. AP’s Candace Choi tells us that the franchisees aren’t happy about it either. “If franchisors are joint employers with their franchisees, these thousands of small business owners would lose control of the operations and equity they worked so hard to build,” said a statement released by the International Franchise Association. And that’s no small source of worry, because franchisees have little control over their operations and equity to begin with.
For those of you without any QSR experience, let me give you my perspective on it: In one way, buying a franchise is like buying a house —the only thing you really own is the promissory note you signed for the loan. On the other hand, there are significant differences: In your house, you can have the décor, the furniture, the food and the clothes you like. When you’re a franchisee, you’re not really your own boss; the major difference between you and a regional manager is that you have assets at risk.
General managers (the ones who run individual stores) see it clearly. Choi’s story mentions the frequent visits corporate reps make “to check up on how franchisees are running restaurants, including by standing outside the drive-thru to time how quickly cars go through. Said longtime employee Richard Eiker, “Managers go crazy when corporate comes in for these inspections.”
They do; I know.
They do; I know.