Burleson Consulting

Last month, I attended the International Franchise Association’s Annual Convention in San Antonio.  The convention was a huge success and touched on many different aspects of the franchise business model. However, the overriding topic of the convention was naturally the ongoing issue of joint employment and the actions being taken by various governmental bodies to undermine the integrity of franchising.

While many have heard of the Alamo, most don’t know San Antonio is the 7th largest city in the U.S. And most don’t know that the Menger Hotel, my accommodations while there, was where Teddy Roosevelt recruited his legendary Rough Riders. Today, on the 180th anniversary of Texas’ Declaration of Independence, I am reminded of the massacre that occurred at the Alamo (and Goliad) and the subsequent Texas victory at San Jacinto.

During those days, uncertainty pervaded for a far different reason than the uncertainty that plagues the future of the franchise business model as we know it today.  During the convention, opinions and advice varied widely— some presenters suggesting franchisors fine tune their systems all the way to some encouraging patience while the courts turn back rulings and activities by the NLRB and DOL.

While patience is, indeed, necessary during these uncertain times, I believe that franchisors can take steps to feel prepared. Step back, evaluate systems’ manuals and operations, and ascertain whether certain language or field operations that could be viewed as exceeding the control threshold have become part of the franchise’s business and, consequently, could push the system into the joint employment world. These reviews are simple, relatively inexpensive, and can pay huge dividends when compared to the potential legal costs usually associated with an audit by state or federal government.

Happy Texas Independence Day and here’s to the eventual success of restoring the integrity of the franchise business model.