Franchises fear a “devastating” change to their business model


NEW YORK CITY — On Thursday, in the middle of a vast convention hall floor in the bowels of the Javits Center, Pedro Gallegos stood at a podium and described how he had arrived in the United States from his native Ecuador—carrying just two suitcases. Within a few years, he and his wife were able to invest in a moving franchise called Two Men and a Truck. They’ve gone from two trucks to ten in San Diego, and have earned themselves a spot in the middle class.

“I am passionate about franchising because of the opportunities it has offered my family,” Gallegos said, in front of a small group at the International Franchise Expo, a trade show where prospective business owners can shop for new opportunities. The little enterprise might look like the arm of a giant company, but Gallegos says that really, he’s a successful young entrepreneur like anyone else.

But now, Gallegos said, there’s a fight in Washington that could change how he runs his business day-to-day. And it’s all because of a different company that has nothing to do with his: McDonald’s. Read more

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