1851

According to the International Franchise Association (IFA) nearly 4 percent of all small businesses in the U.S. are franchises; Government might not understand the true impact

It is estimated that there are more than 900,000 franchise businesses across 300 business categories in the U.S. which provide nearly 18 million jobs and generate more than $2.1 trillion to the economy. Franchising is a huge industry, yet, quite often, policymakers don&rsquo;t understand the fundamentals of franchising enough to be mindful of its impact and the impact of their ideas.

1851 interviewed its 2017 Franchise Legal Players, those charged with protecting the industry from a legal standpoint, about why they believe franchising is under attack:

Kate McComiskey, <a href="http://sylvanfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchising-under-attack-part-4-2703482" target="_blank" rel="nofollow" target="_blank">Assistant General Counsel Sylvan Learning*</a>: Franchising, like anything, is subject to the ebbs and flows of changes in the political and economic climate of the day. Certainly, there have been recent threats to the franchise business model, both with respect to franchisees and franchisors alike, but the way in which franchisees and franchisors have joined forces against the policymakers and regulators that seek to bring them down is remarkable. I am confident that, with all of us working together in unison, the franchise model will forge a way forward.

David Paris, <a href="http://www.paslawfirm.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchising-under-attack-part-4-2703482" target="_blank" rel="nofollow" target="_blank">Paris Ackerman</a>: Regulations and controls over franchising have been progressing for decades. It is a multibillion dollar industry -- the industry players will find a way forward.

Lee Plave, <a href="http://plavekoch.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchising-under-attack-part-4-2703482" target="_blank" rel="nofollow" target="_blank">Plave Koch</a>: There have always been challenges from various places, sometimes even from within. The key to making progress for franchisors and franchisees is to attain operational excellence, which will cut down on the instances where something goes wrong and which is what regulators, lawmakers, plaintiffs&rsquo; counsel and courts seize upon.

Elizabeth Sigety, <a href="http://www.foxrothschild.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchising-under-attack-part-4-2703482" target="_blank" rel="nofollow" target="_blank">Fox Rothschild</a>: I think there have been various challenges to franchising throughout the years. Now, most challenges have to do with a lack of understanding of the franchise model &ndash; especially on the joint employer front. I am an optimist generally, so I think we will pull through. There is just too much at stake.

Fredric Cohen, <a href="http://www.chengcohen.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchising-under-attack-part-4-2703482" target="_blank" rel="nofollow" target="_blank">Cheng Cohen</a>: It certainly has been targeted by those advancing particular agendas, whether it be service employee organizers, creative employment lawyers, or state and local legislatures, all of whom seem intent on taking advantage of a common misapprehension of the franchise relationship. That is new. What&rsquo;s not new is the challenge that attack presents. Franchising has always needed to educate. In the current environment that need is heightened by the increased risks (some would suggest &lsquo;existential&rsquo; risks&mdash;I&rsquo;m not among them) we face. We as an industry need to do far better at helping all concerned to understand the role franchising plays in our economy, whether at the macro level or in a local community, and the true nature of the relationship. All franchising does at the end of the day is create jobs and afford opportunity. We need to get that message out far more effectively than we have done.

Stuart Hershman, <a href="https://www.dlapiper.com/en/us?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchising-under-attack-part-4-2703482" target="_blank" rel="nofollow" target="_blank">DLA Piper</a>: Franchising has definitely been under attack over the past two to three years, in particular in the &ldquo;joint employer&rdquo; area and in a few states where franchise-specific legislation has been introduced.

While attacks on franchising have occurred over the years, those attacks typically have been localized. What is most important about the joint employer issue is that it has not remained at the government level. The greatest challenge, in my opinion, comes from the numerous private plaintiff lawsuits, many of them purported class actions, seeking to hold franchisors responsible for the acts of their franchisees. I believe that most of these lawsuits have been inspired by the positions articulated by government agencies in support of the joint employer theory.

Franchising Under Attack - Part 4 | 1851 Franchise

1851 Franchise

1851 Asks the Franchise Legal Players Why

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

Franchising Under Attack Part 4

franchising-under-attack-part-4

TruBlue Home Service Ally

Why TruBlue is the Ideal Franchise for Multi-Unit Owners: Scalable Growth With a Purpose

why-trublue-is-the-ideal-franchise-for-multi-unit-owners-scalable-growth-with-a-purpose

Onigilly Japanese Kitchen

Koji Kanematsu Turned a 2,000-Year-Old Japanese Staple Into One of the Most Scalable Restaurant Franchise Models

koji-kanematsu-turned-a-2000-year-old-japanese-staple-into-one-of-the-most-scalable-restaurant-franchise-models

Lindora

Celebrating the Nurse Behind the Mission: How Melinda Endricks Is Powering Lindora’s Growth and Impact Nationwide

celebrating-the-nurse-behind-the-mission-how-melinda-endricks-is-powering-lindoras-growth-and-impact-nationwide

Sola Salons

Sola Salons Targets Chicago for Strategic Franchise Growth

sola-salons-targets-chicago-for-strategic-franchise-growth

Melting Pot

Photo of Melting Pot white chocolate fondue

How Melting Pot Franchisees Drive Year-Round Success Through Strategic Promotions and Local Marketing

melting-pot-franchise-year-round-success

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands - 1851 Franchise

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands

doordash-acquistions-deliveroo-sevenrooms

Crumbl Franchise Investment - TSG Consumer Partners -  1851 Franchise

TSG Consumer Partners Takes Minority Stake in Crumbl, Signaling Franchise Growth Potential

crumbl-franchise-investment-tsg-consumer

Yum Brands Reports Strong Q1 Results with Big Boost from Taco Bell

yum-brands-reports-strong-q1-results-with-big-boost-from-taco-bell

QSR: McDonald’s Gains Momentum With Chicken Innovation, Value Deals and Franchisee Support

mcdonalds-franchise-recovery-chicken-strategy-value-deals-2025

The Future of Franchising: Trends and Predictions for 2025 and Beyond

the-future-of-franchising-trends-and-predictions-for-2025-and-beyond

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

How Robert Trujillo Expanded His Construction Business With UWRG

how-robert-trujillo-expanded-his-construction-business-with-uwrg

Health Care Professional in the Non-Profit Space Brings TruBlue to North Pittsburgh

health-care-professional-in-the-non-profit-space-brings-trublue-to-north-pittsburgh

Franchisee Spotlight with Armando Cordova and Jorge Molina with Crust Pizza Co. Logo

Texas-Sized Ambition: How a Shared Dream Turned Into Three Crust Pizza Co. Locations

crust-pizza-co-armando-cordova-jorge-molina-georgetown-launch

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

District Taco Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-district-tacos-franchise-costs-fees-profit-and-data

The Ultimate Guide to Selling Franchises: Building Your Brand’s Growth Machine

ultimate-guide-to-selling-franchises

Franchising Under Attack Part 4

MORE STORIES LIKE THIS