Why is Washington Hunting Franchising

IFA's Matt Haller explains how the NLRB ruling made an immediate impact on small businesses.

SPONSOREDUpdated 3:15PM • 11/30/15

The National Labor Relations Board ruled Aug. 27 that Browning-Ferris Industries, a waste-disposal company based in Houston, was responsible for workers employed through a staffing agency. They decided Browning-Ferris is a joint employer of its contract employees and, therefore, responsible for their treatment.

The decision has had an immediate impact on the state of franchise business.

“In the aftermath of the NLRB’s decision, we are already seeing the joint employer threat impact small business owners negatively,” said Matt Haller, senior VP of Media Relations and Public Affairs at the International Franchise Association (IFA).

According to a recent IFA survey, 94 percent of franchises said they were concerned about the impact on the cost of doing business due to an expanded joint employer standard.

“Employers have no clarity as to where the line will be drawn moving forward, despite attempts by the General Counsel of the NLRB to assuage these concerns,” Haller said.

Industry groups, such as the IFA, anticipated the recent ruling long before it was finalized and have been proactively working to organize and lead a way to avoid the roadblocks that the decision creates for franchising.

They have organized more than 25 trade associations and hundreds of small business owners around the country to participate in the Coalition to Save Local Business. Additionally, the IFA has worked to mobilize its grassroots efforts nationwide. The Franchise Action Network (FAN) consists of nearly 9,000 locally owned franchise owners working to create jobs and opportunity in their neighborhoods.

“The best way for individual franchise owners to make their voice heard is through FAN,” Haller said. “By building the Franchise Action Network across the nation, our industry will be prepared to handle the current and upcoming federal, state and local issues that threaten the business model.”

Fortunately, Haller said, Congress is taking action. The Protecting Local Business Opportunity Act S. 2015/H.R. 3459, will solely restore a long held joint employer standard that small businesses relied upon and enabled our industry to be successful—the legislation has more than 120 cosponsors in the House and nearly 50 in the Senate.

“It's an unprecedented time for franchising, but there is power in numbers and it is the collective voices and stories of small business owners that ultimately will make a difference.”