1851

Perhaps the most intimidating part of becoming a franchisee as a novice entrepreneur is sifting through the legal jargon. Potential franchisees should <a href="https://1851franchise.com/2020s-top-franchise-legal-players-2713623">hire a lawyer</a> to help them navigate the <a href="https://1851franchise.com/sportclips/are-franchise-agreements-really-one-sided-4103">dense, wordy franchise agreement</a> and the <a href="https://1851franchise.com/what-should-franchisors-look-for-when-hiring-a-franchise-attorney-2703456">legal norms of their industry at large</a>, but some legal issues remain unsettled.&nbsp;&nbsp;Perhaps the biggest example of one such issue is <a href="https://1851franchise.com/what-the-nlrb-s-recent-rulings-really-mean-for-the-franchise-business-model-3408">the Joint Employment decision by the National Labor Relations Board (NLRB)</a>. Here is everything franchisors and franchisees need to know about the legal issue.<h3>What is Joint Employment?</h3>Joint employment is when more than one entity is a worker's employer, which is a primary feature of franchising. In 2015, the NLRB decided to <a href="https://www.nlrb.gov/news-outreach/news-story/board-issues-decision-browning-ferris-industries?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nlrbs-joint-employment-decision-what-franchisees-need-to-know-2714866" target="_blank" rel="nofollow">broaden the interpretation of joint-employer status</a>, <a href="https://1851franchise.com/what-the-nlrb-s-recent-rulings-really-mean-for-the-franchise-business-model-3408">resulting in a threat to the franchised business model's mode of employment</a>. Basically, the ruling meant that companies (franchisors) could be held responsible for labor violations committed by their contractors (franchisees). After the NLRB expanded the joint employer definition, <a href="https://www.restaurantdive.com/news/dol-narrows-joint-employer-definition-in-final-rule/570303/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nlrbs-joint-employment-decision-what-franchisees-need-to-know-2714866" target="_blank" rel="nofollow">joint employer lawsuits increased 93%</a> and cost individual franchise businesses an average of $42,000, <a href="https://www.restaurantbusinessonline.com/operations/research-puts-price-joint-employer-confusion-333b-annually?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nlrbs-joint-employment-decision-what-franchisees-need-to-know-2714866" target="_blank" rel="nofollow">according to the International Franchise Association</a>. In fact, many foodservice franchisors considered cutting back on or halting franchising entirely to avoid this increased liability. This issue impacts both franchisors and franchisees from a hiring and potentially a financing standpoint.&nbsp;<h3>How Does It Relate To Franchising?</h3>Most franchise systems grant that franchisees, while having to comply with certain system standards, are independent businesses charged with the responsibility for the day-to-day operation of their own businesses. That independence is important for both franchisor and franchisee — the franchisor is often able to use the independence to avoid liability for claims arising out of the operation by the franchisee of its business, and the franchisee counts on that independence for things like <a href="https://www.sba.gov/funding-programs/loans?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nlrbs-joint-employment-decision-what-franchisees-need-to-know-2714866" target="_blank" rel="nofollow">qualifying for loan guarantees from the Small Business Administration.</a>With the NLRB’s changes in the perceived relationship between franchisee and franchisor, franchise brands would be responsible for issues directly related to the local franchisee. This disrupts the core foundation of franchising.Since employees are the foundation of most businesses, maintaining a certain distance between franchisor and franchisee on the matter of the franchisee’s employees (hiring, firing, and other terms of employment) ensures the franchisee’s independence.In February, <a href="https://1851franchise.com/nlrb-finalizes-ruling-to-reduce-joint-employer-liability-for-franchisors-2712391#stories">the National Labor Relations Board (NLRB) published a rule updating its joint-employer regulations</a>. According to the new ruling, franchisees could be considered a joint employer of an operator's employees <a href="https://www.qsrmagazine.com/legal/nlrb-businesses-must-have-substantial-control-be-joint-employer?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nlrbs-joint-employment-decision-what-franchisees-need-to-know-2714866" target="_blank" rel="nofollow">only if the franchisee maintained “substantial control” over the workers' essential terms of employment</a>. The NLRB defined these essential terms exclusively as “wages, benefits, hours of work, hiring, discharge, discipline, supervision and direction.”&nbsp;This meant that franchisees could continue to oversee the responsibility of recruiting and maintaining a staff, instead of having to involve a franchisor that might have no familiarity with the local labor market. Still, many worried these updates could be <a href="https://1851franchise.com/no-more-burger-brawls-mcdonalds-employees-sue-for-company-failure-to-mediate-workplace-violence-2711690#most-recent">discouraging to labor groups that have tried to hold corporate restaurants accountable</a> for the bad actions of their franchisees.&nbsp;This summer, the U.S. District Court Judge Gregory Woods overturned the NLRB redefinition of Joint Employer, saying Labor failed to explain adequately why its interpretation of “joint employer” changed.&nbsp;<h3>Should a Franchisor Be Afraid of Being Labeled a Joint Employer?</h3>According to <a href="https://1851franchise.com/top-franchise-lawyers-jonathan-barber-esq-of-franchiselaw-2713416">Jonathan Barber, Esq., Managing Attorney</a> at <a href="https://franchise.law/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nlrbs-joint-employment-decision-what-franchisees-need-to-know-2714866" target="_blank" rel="nofollow">Franchise.Law</a>, this overturning of the redefinition, while inconvenient, won’t really change much. “It was nice for the NLRB to clarify its definition of a joint employer, however, the real test is whether a franchisor has too much involvement in its franchisees' human resource practices,” he said. “If a franchisor prescribes a minimum number of employees and basic qualifications for them, they shouldn't be afraid of being labeled a joint employer.”&nbsp;However, Barber notes that if a franchisor itself interviews each of its franchisees' prospective employees, conducts background checks, trains the employees and otherwise participates in the overall management of those employees, they'll most likely be found to be a joint employer.&nbsp;<h3>How Can a Franchisor Avoid Joint Employer Status?</h3>“The best practice is for franchisors to give minimum staffing guidelines and to let their franchisees handle all of their employment needs,” Barber said.Luckily, the recent NLRB ruling doesn’t necessarily spell disaster for franchisors or franchisees. “Woods’ decision basically challenges whether the NLRB properly implemented its new definition of a joint employer,” said Barber. “It doesn't set a new standard, holding that all franchisors are joint employers simply by virtue of their franchise relationship. That would be catastrophic.”The back-and-forth of the NLRB ruling is a prime example of why it is so important for franchisees to understand all of their rights and obligations before signing on the dotted line. Whether it be an attorney, a broker or even an established franchise owner, reaching out to experts and asking about obligations is an important step in the due diligence process.

NLRB’s Joint Employment Decision: What Franchisees Need To Know

1851 Franchise

The National Labor Relations Board’s decision on the issue of Joint Employment continues to send ripples across the franchising space. Here’s what you need to know.

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Strategic Franchising

Exiting Franchising: How Strategic Franchising Helps Owners Build and Cash In on Their Legacy

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Beansquad

Why Franchisors Need the Right Financial Partner by the End of Q1

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Layne's Chicken Fingers

Layne’s Chicken Fingers Brings the Crunch to Rockwall with April 18 Grand Opening and Free Layne’s for a Year

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Layne’s Chicken Fingers Brings the Crunch to Waycross with April 11 Grand Opening and Free Layne’s for a Year

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ServiceMaster Restore

How ServiceMaster Restore Franchisees Offer Managed Repair Services

How ServiceMaster Restore Franchisees Offer Managed Repair Services in Addition to Disaster Recovery as a Single-Source Solution

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KKR Nears Deal for Nothing Bundt Cakes at $2 Billion

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Prince St. Pizza Partners With Dave’s Hot Chicken Franchisee for National Growth

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KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal -  1851 Franchise

KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal

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FTC Settlement Puts New Focus on Franchise Disclosure Standards - 1851 Franchise

FTC Settlement Puts New Focus on Franchise Disclosure Standards

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Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units - 1851 Franchise

Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units

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Private equity firm KKR is set to buy&nbsp;<a href="https://www.nothingbundtcakes.com/franchise-opportunities/">Nothing Bundt Cakes</a> from Roark Capital for about $2 billion,&nbsp;<a href="https://www.franchisewire.com/kkr-to-buy-700-unit-nothing-bundt-cakes-for-2-billion/">FranchiseWire recently reported</a>. The deal highlights&nbsp;<a href="https://stachecow.com/private-equity-in-franchising-why-pe-keeps-buying-franchise-brands-755">how attractive franchise brands have become for investors</a>.<a href="https://1851franchise.com/franchise-deep-dive-nothing-bundt-cakes-franchise-costs-fees-profit-and-data-2721459">Nothing Bundt Cakes</a> has expanded rapidly in recent years. The brand reached 700 locations in 2025, up from about 390 stores when&nbsp;<a href="https://www.roarkcapital.com/">Roark Capital</a> bought it in 2021. Much of that growth has come from franchisees, who own and operate most of the locations. In 2024 alone, the company added more than 100 new stores.The brand was founded in 1997 by Debbie Shwetz and&nbsp;<a href="https://www.linkedin.com/in/dena-tripp-2a74787/">Dena Tripp</a>, who started baking cakes at home in Las Vegas. Today, it is known for its variety of flavors and simple product lineup, including full-size cakes and Bundtlets.One reason the company stands out is its unit economics. Stores that have been open for at least two years average about $1.4 million in annual sales. That level of performance has made it appealing to both franchisees and investors.KKR has invested in a range of restaurant and food-related businesses. This acquisition adds another established franchise brand to its portfolio.Roark, meanwhile, continues to focus on large franchise systems. Its holdings include brands like&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-subway-franchise-costs-fees-profit-and-data-2722471">Subway</a> and&nbsp;<a href="https://www.google.com/search?q=Dunkin+franchise+deep+dive&amp;oq=Dunkin+franchise+deep+dive&amp;gs_lcrp=EgZjaHJvbWUyCQgAEEUYORigATIGCAEQRRg80gEIMTkzN2owajeoAgCwAgA&amp;sourceid=chrome&amp;ie=UTF-8#:~:text=Dunkin%27%20Franchise%20Costs%2C%20Fees,franchise%2Ddeep%2Ddive%2Ddunkin%2D...">Dunkin'</a>. The firm is also reportedly considering taking its&nbsp;<a href="https://inspirebrands.com/">Inspire Brands</a> platform public, which could raise around $2 billion.Read the full article&nbsp;<a href="https://www.franchisewire.com/kkr-to-buy-700-unit-nothing-bundt-cakes-for-2-billion/">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

After several years of steady expansion, the brand has reached a scale and level of performance that continues to draw attention from large private equity buyers.

According to a&nbsp;<a href="https://www.businesswire.com/news/home/20260312305776/en/RF-Expands-Residential-and-Commercial-Services-Portfolio-with-Investment-in-Precision-Garage-Door-Service-Franchisee">recent release</a>,&nbsp;<a href="https://rf-partners.com/">RF Investment Partners</a>, a group focused on flexible capital solutions and value-add support to lower-middle-market businesses, has teamed up with&nbsp;<a href="https://www.burlingtoncp.us/">Burlington Capital Partners</a>, a group focused on family, founder and operator-owned lower-middle-market businesses, to acquire a prominent multi-territory&nbsp;<a href="https://franchise.neighborly.com/precision-door">Precision Garage Door Service</a> franchise.The investment marks the seventh platform for RF within the service space. Precision Garage Door Service, which is part of the larger&nbsp;<a href="https://www.neighborly.com/">Neighborly</a> ecosystem, specializes in the installation, maintenance and repair of garage doors.&nbsp;“We are proud to partner with management and the Burlington team to support continued growth by investing in people and operational excellence,”&nbsp;<a href="https://www.linkedin.com/in/peter-fidler-6787143">Peter Fidler</a>, managing partner and co-founder of RF Investment Partners, said in the release. “The sector continues to present compelling opportunities given the essential nature of garage door repair, and we look forward to building on Precision’s strong foundation to drive long-term value.”This deal is part of the broader trend toward institutionalized multi-unit and multi-territory operators. Previously, franchising was largely viewed as the place for “mom-and-pop” businesses. And while franchises remain small, local businesses, the aggressive entry of private equity firms focused on operators (franchisees) rather than the brand (franchisor) is bringing new energy to small business ownership.Read the full release&nbsp;<a href="https://www.businesswire.com/news/home/20260312305776/en/RF-Expands-Residential-and-Commercial-Services-Portfolio-with-Investment-in-Precision-Garage-Door-Service-Franchisee">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Design with Precision Garage Door Service team members

The strategic investment marks the seventh residential services platform for RF and reflects a growing institutional desire for high-potential, operator-led franchises.

RF Investment Partners and Burlington Capital Join Forces to Acquire Top Precision Garage Door Franchise

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<a href="https://princestreetpizza.com/">Prince St. Pizza</a> has partnered with a&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-daves-hot-chicken-franchise-costs-fees-profit-and-data-2723529">Dave’s Hot Chicken</a> franchisee to support its national expansion,&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">Pizza Marketplace recently reported</a>. The New York-based brand has joined forces with&nbsp;<a href="https://www.linkedin.com/in/lawrencekourie/">Lawrence Kourie</a>, founder and largest franchisee of Dave’s Hot Chicken, to grow its footprint across the country. Kourie’s experience opening and operating locations in multiple markets will help the brand as it enters new territories."Lawrence has built and operated one of the fastest-expanding restaurant concepts in the country, but what stands out is his disciplined approach to growth and brand integrity," said&nbsp;<a href="https://www.linkedin.com/in/lawrence-longo-342856/?skipRedirect=true">Lawrence Longo</a>, CEO of Prince St. Pizza. "He understands how to develop a concept without losing what made it special in the first place, which is critical as we enter this next phase."The expansion will use Kourie’s existing infrastructure and operations to introduce Prince St. Pizza into new markets. Each location will aim to reflect the same experience as the brand’s original Nolita shop."I have spent years evaluating restaurant concepts, and it is rare to find one that delivers both a strong product and a clear identity," Kourie said. "What Prince St. has built is difficult to truly replicate. The focus now is on growing the brand in a way that preserves that foundation while introducing it to new communities."Kourie is a key operator within the Dave’s Hot Chicken system,&nbsp;<a href="https://1851franchise.com/daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion-2729557#stories">which Roark Capital acquired in a $1 billion deal in 2025</a>. The partnership connects Prince St. Pizza to an operator with experience scaling a brand that has attracted major private equity investment.Read the full article&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Prince St. Pizza is teaming up with a leading Dave’s Hot Chicken franchisee to expand nationwide, tapping proven operator experience to drive growth.

<a href="https://www.yum.com/wps/portal/yumbrands/Yumbrands/">Yum! Brands</a> is considering a potential sale of Pizza Hut and plans to close 250 underperforming U.S. locations, according to a&nbsp;<a href="https://simplywall.st/stocks/us/consumer-services/nyse-yum/yum-brands/news/yum-brands-weighs-pizza-hut-sale-as-portfolio-reset-accelera">recent article on Simply Wall St</a>. For the franchising industry, the significance is less about the stock and more about what it says about how large franchisors are managing brand portfolios in a high-cost operating environment.<a href="https://1851franchise.com/pizza-hut-franchise-deep-dive-2722519">Pizza Hut</a> is one of the most recognizable names in franchising. If Yum! decides to sell it, that would be a notable shift for a company built on a multi-brand platform. For years, large brand groups have argued that operating multiple concepts creates advantages, including shared resources, stronger purchasing power and the ability to invest in technology across the system. A sale would suggest Yum! believes those benefits no longer outweigh the effort required to improve Pizza Hut’s performance.The planned closures may have the most immediate impact on franchisees. When a franchisor reduces its footprint, it can change how the brand performs in local markets. Fewer locations can mean less convenience for customers, which can hurt overall traffic. It can also weaken the effect of local advertising when there are fewer restaurants supporting promotions in the same trade area.Closures can also affect store-level economics in ways that go beyond the locations that shut down. In some markets, remaining franchisees may pick up some displaced demand. In others, customers may switch to competitors. The changes can also affect local co-op advertising budgets and, depending on how purchasing and distribution are structured, can influence costs tied to volume.The move comes as competition in pizza remains intense, with&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-dominos-pizza-franchise-costs-fees-profit-and-data-2725506">Domino’s</a> and&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-papa-johns-franchise-costs-fees-profit-and-data-2724607">Papa Johns</a> continuing to push delivery, digital ordering and value-focused offers. Simply Wall St notes Yum! has been rolling out its Byte digital platform across brands. If Yum! changes Pizza Hut’s role in the portfolio, it could also change where the company focuses its technology and marketing investment.For franchise systems watching from the outside, Yum!’s review is a reminder that growth is not always the main priority. Sometimes the bigger decision is whether a legacy brand can be improved inside a platform or whether it will perform better under a different owner and a different plan.Read the original article&nbsp;<a href="https://simplywall.st/stocks/us/consumer-services/nyse-yum/yum-brands/news/yum-brands-weighs-pizza-hut-sale-as-portfolio-reset-accelera">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="https://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Yum! Brands Pizza Hut Sale - 1851 Franchise

Yum! is reviewing the brand and closing 250 U.S. locations, a move that could affect franchisees and reshape its restaurant portfolio.

Possible Pizza Hut Sale Signals Shift in Yum! Brands’ Franchise Strategy

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

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Amada Senior Care Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Amada Senior Care is a non-medical home care, assisted living placement, and related senior-support services with multiple revenue streams.

amada-senior-care-franchise-costs-fees-profit

Beef 'O' Brady's Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Beef ‘O’ Brady’s is a family sports pub concept built around community, casual dining and lifelong local loyalty.

beef-o-bradys-franchise-costs-fees-profit-and-data

image of urswim franchise deep dive costs and fees and investment range

Franchise Opportunity Deep Dive: A purpose-driven swim instruction and aquatics management franchise offering at-home, indoor and community-based swim programs.

urSwim Franchise Costs, Fees, Profit and Data for 2026

urswim-franchise-costs-fees-profit

Franchise Opportunity Deep Dive: A fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.


Newk’s Eatery Franchise Costs, Fees, Profit and Data for 2026

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Visiting Angels Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Visiting Angels is a senior home care franchise focused on in-home support for seniors and individuals with disabilities.

NLRB’s Joint Employment Decision: What Franchisees Need To Know

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