A new decision from the National Labor Relations Board could have major repercussions for the relationship between franchisors and their franchisees.

The NLRB has been investigating a series of complaints connected to employee protests at McDonald’s. So far, only 43 of the 181 cases have been found to have merit, but the NLRB has decided to treat McDonald’s itself as a joint employer in those cases.

That means McDonald’s the franchisor could be held liable if its franchisees have done something wrong.

The International Franchise Association called the decision “wrong and unjustified.” The decision could unsettle the franchise business model and slow growth in this sector of the economy.

“This legal opinion would upend years of federal and state legal precedent and threaten the sanctity of hundreds of thousands of contracts between franchisees and franchisors, a bedrock principle of the rule of law,” IFA President and CEO Steve Caldeira said in a written statement.

Labor supporters argued that, because McDonald’s exercises so much control over its franchisees, it should be held responsible for any bad actions.

“With real control should come real responsibility and accountability,” said Christine Owens, executive director of the National Employment Law Project. “After a close examination, the general counsel has apparently determined that the level of control McDonald’s Corporation exerts over the operations of its franchise restaurants is sufficient to make McDonald’s an employer in law and fact.”

(Photo by Justin Sullivan/Getty Images)