Call to Action: The fight against joint employer continues

If one thing is certain in the world of political uncertainty, it’s that direct engagement with lawmakers is essential to successful policy outcomes. This year has brought one of the most consequential policy battles to date for the franchise sector: fighting to overturn the National Labor Relations Board’s (NLRB) expanded joint-employer standard.

That fight continues because, in early May, President Joe Biden vetoed legislation that would have ended the threat of joint employer. The veto, which took place during National Small Business Week, came after 5,300 franchise community leaders from all 50 states sent a petition to the White House urging President Biden to sign the legislation to protect small businesses.

President Biden claims to be a champion for small businesses, but he turned his back on franchising, a business model that’s done more to put countless Americans into small business ownership, particularly for traditionally underrepresented minorities, women, and veterans. With that action, the administration solidified its position that it cares more about special interests than small business owners and their employees, who face a near-daily onslaught of costs and uncertainties from overregulation.

This rule from the NLRB takes away franchisee autonomy, wipes out franchisee equity, and changes the franchise business model as we know it. We experienced the consequences of this rule when a similar standard was issued in 2015. That’s why the franchising community has been outspoken against the rule and critical to ending it once and for all. Countless members of IFA have advocated against expanded joint employer, leading to bipartisan support for legislation to overturn the rule. The legislation passed both the U.S. House and Senate with bipartisan majorities—undoubtedly a direct result of lawmakers hearing from concerned constituents about the harm this rule would bring.

Now is not the time to back down. The importance of the franchise community engaging in advocacy is paramount, especially with increased government and media scrutiny over the franchise business model.

Speaking out

At this year’s IFA Annual Convention in Phoenix, attendees heard from multi-unit giants David Humphrey of Ignite Fitness Holdings, Greg Flynn of Flynn Restaurant Group, and Jesse Keyser of Keyser Enterprises, who shared why it is a priority for them to take time away from their day-to-day jobs to get involved in government relations.

Flynn said, lawmakers “believe more of what you have to say because you’re doing it from firsthand experience. Advocacy is so important for our businesses. We operate in a tangle of regulations and laws that are very hard to navigate. They really affect our outcomes in an important way. Anything we can do to make our lives a little less burdened by the regulations or even assisted by helpful legislation … has outsized impacts on our businesses.”

We continued the conversation on a panel at the recent Multi-Unit Franchising Conference with multi-brand franchisees Rob Branca and Nate Garn, who detailed the real-life implications of the California FAST Act and the bottom-line impact of tax law changes, such as the need to reinstate the interest deduction that expired in 2022. We also discussed the importance of having relationships before you need them, which happens through persistence in advocacy over years.

Whether you’re a long-time advocacy pro or don’t know where to start, the most important thing to remember is that your voice does make a difference, and IFA is here to support you in that journey. Whether it’s making a connection, facilitating a meeting, or sharing your message, we are working tirelessly here in Washington, D.C., and around the states to protect this powerful business model. We can’t do it without you.

Thank you to everyone who has taken the time to make a difference, including the 5,300 individuals who joined the petition to the White House urging the president to sign the legislation to overturn joint employer. We appreciate your work to make this business model stronger. Together, we can change the narrative around franchising so lawmakers truly understand how the business model works and see all the good that business owners like you do every single day.

Matthew Haller is president and CEO of the International Franchise Association.