For immediate release
Alisa Harrison, 202-628-8000
Matthew Haller, 202-662-0770
WASHINGTON, June 29-Eighty-five percent of franchise business executives, owners and operators are less-likely to hire workers or expand their business according to a new survey by the International Franchise Association. The results were tabulated as part of an IFA telephone town hall meeting today with nearly 2,200 IFA members following the decision by the U.S. Supreme Court to uphold the Affordable Care Act.
"For many IFA members looking to expand their franchise systems throughout the country, the health law creates increased uncertainty in long term business planning by forcing an employer to choose between absorbing rising premiums or paying mandated penalties and neither is a good prescription for growth," said IFA President & CEO Steve Caldeira. "The impact of this law is unfortunate, particularly given the current public policy environment which essentially translates into an assault on the small business community."
Asked whether the Supreme Court ruling would make them more or less likely to hire workers or grow their business in the coming months, 173 or 85 percent of the 203 respondents said they were less likely, with 30 respondents or 15 percent indicating more likely.
Participants voiced questions about the impact of the law's employer mandate requirement to provide coverage, the penalties associated with not providing coverage, the reporting requirements, and definitions dealing with full-time versus part-time workers.
To address IFA member concerns with the law, IFA is engaged in a two-pronged approach: to repeal the law in the legislative process and engage in the formal regulatory process, including analyzing the most difficult, onerous and costly sections of the law for IFA members to implement, and submitting comments to government agencies including the U.S. Department of Labor, U.S. Department of Health & Human Services and the U.S. Department of the Treasury with our recommendations for how to ease the regulatory burden.
"IFA supports market-based solutions to health care reform that provide access to care at an affordable cost for franchise businesses and their employees. IFA will continue to support repeal of the Affordable Care Act, as we have since it was introduced in Congress and signed into law," said Caldeira. "Additionally, we continue to work in the regulatory arena to impress upon regulators the costs this law imposes on the backs of franchise business owners in the form of compliance, mandates, and other onerous and burdensome requirements."
About the International Franchise Association
The International Franchise Association is the world's oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.