Cresanti's Corner: A Win For Franchising

It’s hard to overstate how important this news is: on Sunday, the Department of Labor (DOL) released its final joint employer rule!

So what happened?

The DOL returned the joint employer standard to its traditional definition. This can restore the clarity associated with the previous definition — which leads to lower costs and greater growth for franchises of all sizes. It also better allows for franchisors and franchisees to work together to promote franchisee employee advancement and provide a consistent, quality experience to franchisee customers.

To put this impact in perspective, economic studies show that, under a similar law, the expanded joint employer standard has cost the American economy $33.3 billion per year, led to 376,000 fewer job opportunities and resulted in a 93 percent increase in lawsuits against franchise businesses.

For franchise brands and business owners alike, this DOL rule removes the same barriers that led to those increased costs — that means that franchise businesses can better plan, better hire, better share their knowledge and better grow.

This is the result of years of IFA advocacy. IFA members have hosted legislators, lobbied on Capitol Hill, spoken to the media, written op-eds, sent countless letters and made  phone calls on behalf of the franchise community. That hard work led to clear, concise and easily understood federal policy that is designed to help franchises grow.

That’s the impact of IFA. It’s more than changing policies. It’s changing the environment so you can do business better. And we can’t do it without you.

Robert Cresanti, CFE

President & CEO

International Franchise Association

Find out more about becoming a part of IFA's advocacy efforts here.