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ARTICLE · 13 AUGUST 2014

Who’s The Boss

One huge perk to franchising is that it enables many Americans to own and operate their own small business which would not be possible without franchisors.

United StatesCorporate/Commercial Law

One huge perk to franchising is that it enables many Americans to own and operate their own small business which would not be possible without franchisors. That perk is now in peril as the franchise model many small businesses rely upon is under attack by the Service Employers International Union ("SEIU"). SEIU disfavors the prototype franchising model because of the division of work between franchisees and franchisors. Small business owners pay for the right to use a corporate brand, and the franchisor researches marketable products and services and promotes the brand. The local franchisee agrees to produce the products or render the services at a certain price with quality specifications and handles all of the local employment matters. SEIU finds it much easier to organize labor unions in big businesses rather than in small ones. As such, SEIU has made it a mission to undermine the traditional franchise model in an attempt to create larger – "more union-friendly" work

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