The Obama Administrations National Labor Relations Board ruled in 2015 that Franchisors – who are not legally the employer of a Franchisees employees – could be held as employers and forced to collectively bargain with Unions seeking to unionize the Franchise.
This ruling – if it stands – may effectively alter the Franchise Business model in the United States and place a strain on hundreds of thousands of small businesses. Describe why this ruling has such major negative consequences.