For immediate release
Alisa Harrison, 202-628-8000
Matthew Haller, 202-662-0770
WASHINGTON, July 11 - International Franchise Association President & CEO Steve Caldeira released the below statement today following the House vote on H.R. 6079, the Repeal Obamacare Act, to repeal the Affordable Care Act, which was ruled constitutional on June 28 by the U.S. Supreme Court.
"While we are pleased the House voted to repeal the health care law, the reality is until the make-up of Congress changes, franchise businesses are left with an unworkable and unaffordable employer mandate that will stifle franchisors and franchisees looking to expand by forcing them to choose between rising health care premiums or paying mandated penalties by not providing health insurance to their full-time workers.
"IFA has opposed the Affordable Care Act since the first day it was introduced. Now that it has been upheld, we will continue to engage in the regulatory process with officials in the Obama Administration, and the Departments of Treasury and Labor to impress upon them that the costs of the health care law hurt franchise businesses harder than non-franchised businesses. The law will ultimately change, in particular, the way quick-service restaurant owners do business by driving down the number of full-time employees and increasing automation so business owners can remain profitable. Further, for multi-unit franchisees, these firms are treated as one company for tax and health care purposes as the law unfairly puts many franchise businesses at a disadvantage relative to non-franchise competitors by driving up their operating costs. Net-net, this law is a job-killer and will continue to keep investors, franchisors, franchisees and aspiring entrepreneurs on the sidelines, and that is not a prescription for the economic growth our country so desperately needs."
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.