Are Franchisee’s Employees?

Franchisors are getting political in California. They’re using propaganda to convince Franchisee’s that the law will call them Employees, and that they will lose their businesses. The reality is that they will not be employees, as long as Franchisors don’t treat them like they are.

California’s AB5 law is based on the existing law in Massachusetts. Most franchisors are doing great there under the same law, including Dunkin’ Donuts. They simply have to allow franchisees the operational independence they need to thrive.

7-Eleven has been sued by its’ franchisees over their incredible abuse of the Independent Contractor relationship. Franchisee don’t own a business bank account, the need to wait for 7-Eleven to do the accounting for them and tell them how much they can get paid at the end of the month. They have so much control that even the store temperature is not controlled by the Franchisee, it is controlled by corporate in Dallas.

But, instead of agreeing to relinquish control back to the franchisee, 7-Eleven and other major franchise brands are looking to get an exemption from California lawmakers so they may continue this expanded level of control.