BVM August, 2016 - page 43

Business View Magazine - August 2016 43
Franchise businesses are expected to grow and create
more jobs at a faster pace than the rest of the econo-
my in 2015 for the fifth consecutive year, according to
“The Franchise Business Economic Outlook: 2015,” re-
leased by the International Franchise Association Edu-
cational Foundation and IHS Economics.
“Franchising is an American success story. Indepen-
dently-owned and operated local franchise business-
es are growing faster, creating more jobs at a quicker
pace and producing higher sales growth than other
businesses. Franchising is a vital engine of economic
expansion in the United States and 2015 looks to be
another strong year for franchise businesses,” said IFA
President & CEO Steve Caldeira.
But Caldeira added a word of caution about the fran-
chise outlook. Federal intervention, specifically by
the National Labor Relations Board, could deflate the
growth projections significantly.
“Last month, the National Labor Relations Board
moved to upend decades of law and practice by issuing
a complaint against McDonald’s saying that it should
be considered a ‘joint employer’ with its franchisees.
The entire business model of franchising is endan-
gered by this ill-conceived complaint,” he said. “Hun-
dreds of thousands of franchisees must now operate
not knowing whether they should believe what their
contracts clearly state, that they are in charge of their
own work place practices, including setting wages and
hours, or that the corporations from which they license
their trademarks are also responsible for those things.
The ruling could put the brakes on what looks like a
banner year of accelerated growth and job creation in
the franchise sector.”
IFA members are very worried about the NLRB com-
plaint. The IFA Franchise Business Leader Survey
shows that 97 percent of respondents believe that the
joint-employer ruling, were it to take effect, would have
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