Perspective: Kirton McConkie Law Blog

Showing 2 posts tagged Franchise News.

NLRB decision on joint employment: Should franchisors be worried?

Last week, the National Labor Relations Board (NLRB) issued a highly anticipated decision that broadened its existing definition of joint employers by finding that Browning-Ferris Industries of California Inc. (BFI) was a joint employer of workers at its premises, which were provided by a staffing agency. The majority decision found two or more entities can be deemed joint employers if they are each employers within the meaning of common law, and share or co-determine the conditions of employment. Under the decision, joint employers no longer need to actually exercise control as long as they have reserved the right to do so. In addition, the control need not be direct or immediate. Read More

Franchising across state lines: Do franchisors need to register when doing business in other states?

In addition to federal and state regulations covering franchise disclosure and registration documents, there is often a question of whether franchisors must also register to do business when they contract with franchisees in other states. A business is generally only required to register in the state where it is organized and any state where it is doing, conducting or transacting business. Since franchising is typically viewed as an interstate business activity, the vast majority of states do not require a franchisor to register to do business in a franchisee’s state. One exception is Maryland, which does require a “registration” for entities conducting interstate business, but, even there, the penalties for failing to register a business conducting wholly interstate commerce are minor. Read More