Check out the hottest franchising headlines from the past week.
Landmark ‘Joint Employer’ Hearing Begins
Hearings began this week in the landmark case against McDonald’s USA LLC to determine if operators can be considered a “joint employer” and the company can be held liable for franchisees’ employment practices. The first one-day hearing was in New York, and there are several more planned over the following months to hear the accusations of wage violations and unfair working conditions. This legislation could potentially change the franchise industry.
Quiznos is Expanding into China
Quiznos has announced a 1,500-unit deal in China to open over the next 15 years. This could be the largest development deal in franchising history. The deal is with Parkson Retail Group of China, the retail arm of Malaysian-based The Lion Group. Quiznos is seen as a fit in the market with the country's acceptance of Western food. The Lion Group will open three units in Shanghai this year, then 100 units in 2016.
(From QSR Magazine)
McDonald’s Raises Wages for Workers
McDonald’s Corp. announced it plans to raise wages by more than 10 percent for employees at their roughly 1,500 corporate owned locations. Beginning July 1, McDonald’s will pay at least $1 an hour more than the local minimum wage. However, this wage increase does not include franchise locations.
(From The Wall Street Journal)
Jamba Juice to Refranchise 100 Units
Jamba Inc. has inked an agreement to sell 100 existing company-owned locations in California to an existing franchisee for $36 million. Vitaligent LLC, a St. Louis-based franchise group, will own 105 units after the deal in the San Francisco, San Diego and Sacramento markets.
(From Nation’s Restaurant News)
May Be Missing Opportunities on Google
If your franchise website is not mobile-friendly, you could be losing out on more prospects with the new Google Algorithm update. Earlier this year, Google announced it would be expanding mobile-friendly factors as ranking signals in its mobile search algorithm. The 2015 Annual Franchise Development Report found the percentage of people who research franchise opportunities on their smartphones doubled to 42 percent in 2014.