As The NLRB Attacks Franchisors Like McDonald’s, Is `Quasi-Franchising’ The Answer?


Albert Einstein once said, “in the middle of difficulty, lies opportunity.” Currently, the restaurant franchise community finds itself in the middle of difficulty on two fronts: changing views of the legal separation of the franchisor and the franchisee and changing consumer tastes. The solution to both of these challenges may lie with the modification of the traditional restaurant franchise business model.

The traditional restaurant franchise business model depends on uniformity and regulated business practices. The franchisor develops a successful system to sell particular products in a certain manner and then licenses it to franchisees for a set fee structure. The franchisor dictates most every detail about each franchise store, from the food served, to the décor of the store, to the operations of the store, to the job descriptions of the store’s employees, to the training provided to employees, to the advertising and so on. Franchisees are attracted to this model because it gives them a structure for success while allowing them to claim autonomy over their own businesses…

As The NLRB Attacks Franchisors Like McDonald’s, Is `Quasi-Franchising’ The Answer?

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