50 Business View - February 2015
and force local franchisee business owners into a role
similar to a store manager – or worse out of business
altogether.
In addition, expanding the joint employer definition
would have wide-ranging consequences for local busi-
nesses throughout the country. The NLRB is also con-
sidering the Browning-Ferris case, which could per-
manently alter the employer-employee relationship
for thousands of companies that rely on contractors
and sub-contractors for specialized support. Should
the NLRB adopt a broader definition of joint employer,
many local business owners would lose their invest-
ments, workers would lose their jobs and communities
would lose vital sources of economic activity.
“There’s no upside to upsetting the long-standing em-
ployer-employee relationship,” Caldeira said. “In fact,
these new regulations from the NLRB would diminish
entrepreneurial investment, stifling job growth and eco-
nomic activity in communities from coast to coast.”
Industry Reacts to State
of the Union Address
Local franchise business owners around the country
watched the State of the Union in hopes that President
Obama would outline ways Washington can help small
businesses grow and create jobs. Franchised business-
es in particular have been impacted by constant and
incremental meddling from all levels of government.
Ranging from unfair and discriminatory minimum wage
hikes approved at the local level to the Obamacare
mandate for a 30-hour work week, decisions from ac-
tivist governments have created cost increases that
make it more difficult for franchised businesses to ex-
pand and create new jobs.
The IFA sought the perspective of key leaders within
the franchising community about what they feel Con-
gress and the president should do to support the busi-
ness community.
Herv Breault, Pennsyl-
vania-based Philly Pret-
zel Factory Franchisee:
“As a retired veteran,
franchising is practically
ready made for military
folk and it is imperative
to help integrate our re-
turning servicemen and
women back into the
civilian economy. Con-
gress should pass legis-
lation that would give in-
centives for companies
that hire military veter-
ans, allowing veterans to
pursue their leadership,
teamwork and organiza-
tional experience.”
Nancy Bigley, CEO, Bot-
tle & Bottega, California:
“I have deep concerns
about the proposed
wage hikes being exam-
ined at the federal level.
These dramatic wage
increases are going to
have a negative impact
on small businesses,
which already operate under thin margins. The Con-
gressional Budget Office recently stated that nearly 1
million jobs could be lost if these wages are imposed.
The bottom line is that I don’t think increasing costs
again for small business owners will help them drive
economic recovery. ”
Brooke Wilson, Multi-Unit Franchisee, Two Men and a
FRANCHISE
