Fix the Joint Employer Standard and Protect Small Businesses Franchises
Legal Whiplash is Crippling Local Franchise Owners
At the heart of franchising is a regulation known as the joint employer standard, which defines when two businesses share responsibility for employees. It has changed four times in the last 10 years, fundamentally changing with each new administration in Washington.
The instability creates crippling uncertainty by:
Blocking new entrepreneurs from building a business of their own.
Reducing safety measures, training, and customer service.
Creating confusion and inconsistency for employees.
Weakening brand consistency and growth.
Supporting growth of major corporations at the expense of small business.
The franchise model is uplifting. We can’t let politics tear it down.
franchising powers the american dream
Franchising is one of the most effective paths for Americans to own a small business and achieve the American dream, especially for women, veterans, and communities of color. Today more than 831,000 franchise businesses operate nationwide, creating jobs and opportunities in every zip code.
From well-known national brands to local favorites, franchising helps everyday Americans own a business with the support of a proven model.
But that opportunity is at serious risk.
Fix the joint employer standard. Protect the American dream.
The Fix: A Clear and Permanent Joint Employer Standard
Congress can end the confusion and uncertainty by passing a clear, permanent joint employer standard.
A permanent legislative fix would:
Protect local business ownership and their pathway to the American Dream.
Encourage growth and hiring to bring more local jobs and investment to communities.
Boost training, service, and employee opportunities.
Expand franchise ownership in diverse communities to unlock opportunity and drive inclusive economic growth.
Improve the customer experience across brands Americans know and love.
Franchise freedom and the future of small business depends on it.
