By Peter Bhai
Special to the USA TODAY Network
According to recent surveys, more than half the country believes the American Dream is out of reach. As a first-generation immigrant who has worked my way up from the bottom, I know this mentality is wrong. But I also know there is more our elected officials can do to make my path possible for even more people.
Thankfully, this fall, the U.S. Congress is on track to do that for a business model known as franchising. Notably, this effort has bipartisan support and will create business opportunities by eliminating uncertainties.
Forty years ago, I got my start at a hotel outside Atlantic City, New Jersey. My responsibilities ranged from cleaning and repairs to bookkeeping and finances. As I got older, I assumed I would go to college and leave the industry behind. But even after earning my degree from Drexel University, I was drawn back to my roots in hospitality.
Today, my wife and I run SSN Hotels, a company that owns and operates dozens of hotels across the Mid-Atlantic. As franchisee owners, we manage locations under the flags of national brands — like Marriott.
As local owners, we have the flexibility to manage the daily business decisions. Items like staffing, wages, scheduling, training and expansion fall under our purview. At the same time, because of franchising, we have the power of a national brand and a proven system behind us. When a guest checks in at one of our locations, they know it comes with a set of standards and quality they can trust.Need a news break? Check out the all new PLAY hub with puzzles, games and more!
Franchising is not for everyone. It requires capital, discipline and hard work. But for an immigrant family that started with very little, this model provided a structured pathway for growth. My success story is not unique: nearly two thirds (64%) of franchisees are first-time business owners. Nearly one third (30%) of franchisees would not own a business without the franchise model. In the hospitality industry alone, there are more than 52,000 franchise lodging locations employing over 1.2 million workers.
In recent years, the franchising pathway has been threatened by uncertainty from federal regulators. In Washington, D.C., the National Labor Relations Board, or NLRB, determines the independence between franchisors and franchisees through the federal joint employer rule. Recently, the clear lines for franchisees like me have been blurred during the joint employer debate, which causes uncertainty for businesses and discourages other entrepreneurs from exploring this model.
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Delaware’s delegation must support the American Franchise Act
Right now, Congress is considering a standalone bill called the American Franchise Act. If passed, the legislation would settle the joint employer debate once and for all. The uncertainty and unknowns causing management challenges and liabilities would vanish.
The legislation has the support of nearly 150 members of the U.S. House of Representatives. There is also a companion effort in the U.S. Senate. I am hopeful that members of the Delaware delegation, Sen. Chris Coons, Sen. Lisa Blunt Rochester and Rep. Sarah McBride, will join this bipartisan cause.
America’s hospitality industry has long been a ladder for newcomers. Many of the people who run hotels today began the same way my parents and I did: working long hours, learning the business from the ground up, and earning each step forward. Franchising multiplies that opportunity. It lets hardworking operators plug into sophisticated systems without having to invent every process from scratch. It turns sweat equity into lasting equity.
Preserving the independence that has always defined the franchise relationship is essential if that ladder is to remain open for the next generation of entrepreneurs. Let’s help the next generation grow beyond what they think is possible and show them the American Dream is alive and well.
Peter Bhai, a Wilmington resident, is the co-founder and chief executive officer of SSN Hotels.