The similarities between management-labor and franchisor-franchisee structures have been recognized for many years.1 Recently, these similarities have been receiving attention again, as a result of certain judicial decisions2 holding that a franchisee was not an independent contractor as specified in his franchise agreement, but instead was an employee of the franchisor.
However, notwithstanding the similarities, there are significant differences as well. In 1990, Robert Emerson, a professor of the University of Florida Law School, noted that a key difference between these structures was how they were regulated. The National Labor Relations Act (NLRA) establishes rules about union recognition and requires management and a union to bargain in good faith, once the union has been certified or recognized by the company as the exclusive bargaining representative of an appropriate group of employees. In contrast, there are no federal or state statutes requiring a franchisor to recognize any group of franchisees as being spokespersons for the franchisee community or to meet and bargain with them for any reason or on any subject.3 The franchisor may choose to, or choose not to, meet with its franchisees collectively.
