Reports & Analysis
Nine Million Jobs at Stake
Why Franchising Needs Regulatory Certainty
One of the biggest liabilities for businesses of any size – but particularly small businesses – is regulatory uncertainty. When the rules of the game change, the result can be massive costs that force the affected businesses to raise prices and curtail hiring – and devote precious time and resources to the complexities of compliance. That’s bad for business owners
By Stephen Moore
Who’s the boss? For 832,000 franchise owners, Washington still can’t say.
Most of the franchise restaurants, hotels and gyms in your town aren’t owned by big corporations. They’re owned by local entrepreneurs who put their own savings on the line, sign the lease and make the payroll. Together they support about nine million American jobs. But for more than a decade, federal regulators haven’t been able to answer a basic question for them: who is the employer? The “joint employer” rule has changed four times since 2015, flipping with each new administration. Every reversal has meant more lawsuits, less support from the brands, and less room for small owners to grow and hire
