What is a franchisee, employee or independent contractor?
Any publicly-traded company that is underperforming is a target for corporate takeover. That’s a natural thing. Companies get bought and sold every day.
But because of Coverall, any potential takeover specialist would heavily discount the target’s stock value if their “franchisees” were really misclassified “employees”.
To protect their sorry, loser asses the current management team would want to re-convert all franchisees to employees as a way to prop up their pathetic share price.
Not great news for disorganized, current franchisees.
Welcome to new world of:
- no franchise,
- no job (try servicing your, maybe $200,000 of debt),
- or a minimum wage job (same debt).