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Franchisees Face Higher Labor Costs and Potential Unionization as 'Joint Employer Rule' Takes Effect
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Overview
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The National Labor Relations Board has imposed the 'Joint Employer Rule,' making franchisors jointly responsible for a franchisee's labor practices. This rule is expected to increase costs for franchises, lead to unionization of franchise workforces, and significantly affect the U.S. franchise sector.
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How might the 'Joint Employer Rule' affect the franchisee-franchisor relationship?
What are the potential implications for the overall economy if the rule leads to higher labor costs?
What measures can franchisors take to mitigate the increased labor costs?
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