A mother or father firm that chooses to close down a franchise when employees of that franchise are in search of to unionize is likely to face legal danger solely whether it is deemed a joint employer. Workers and union officers have generally accused mother or father companies of this tactic, although the businesses and business associations have denied that this happens. Whether you are drafting a franchise settlement between related parties or finishing up a transfer pricing evaluation on a controlled franchise transaction involving intangibles, you possibly can gain a lot by taking a glance at actual franchise agreements. These agreements will allow you to perceive the arm’s size nature of the transactions – for instance, the distribution of risk between the individual parties. Ultimately, franchising knowledge will help you set arm’s length transfer prices on your franchise transaction.
