{"id":2241529,"date":"2024-05-10T05:41:02","date_gmt":"2024-05-10T09:41:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/franchises-unbowed-by-bidens-push-for-easier-workplace-unionization\/"},"modified":"2024-05-10T05:43:45","modified_gmt":"2024-05-10T09:43:45","slug":"franchises-unbowed-by-bidens-push-for-easier-workplace-unionization","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/franchises-unbowed-by-bidens-push-for-easier-workplace-unionization\/","title":{"rendered":"Franchises remain resilient amidst Biden&#8217;s efforts to simplify workplace unionization"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffranchises-unbowed-by-bidens-push-for-easier-workplace-unionization%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2241529&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Franchising in America is on the rise, \u200bshowing growth from 697,943 \u200cestablishments \u2063in 2013 to an estimated 821,589 this year. Despite\u2062 stereotypes, franchises cover a wide range of \u200dindustries. Recent regulatory\u2064 efforts, like\u2063 the joint employer \u2062rule, aim \u2063to impact franchising, \u200cbut bipartisan support in Congress has pushed back \u2064against these changes. \u2063President Biden&#8217;s stance on these regulations has\u200d sparked\u2064 debate\u200d within the business community.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/section\/news\/business\/\" target=\"_blank\" rel=\"noopener\" title>Business<\/a> franchising in America continues to increase, with almost a solid decade of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/president-trump-praises-oans-reporting-highlights-growth-in-popularity\/\" title=\"President Trump praises OAN\u2019s reporting, highlights growth in popularity\">recent growth<\/a>. The number of franchise establishments grew from 697,943 in 2013 to 806,270 a decade later, and will rise to an estimated 821,589 establishments this year, according to Statista data.<\/p>\n<p>Franchised businesses are often stereotyped as <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/this-california-bill-would-outlaw-fast-food-and-intensify-inflation\/\" title=\"This California Bill Would Outlaw Fast Food And Intensify Inflation\">fast-food establishments<\/a>. The type of businesses that are franchised run the gamut from, yes, <a href=\"https:\/\/www.washingtonexaminer.com\/section\/news\/food\" target=\"_blank\" rel=\"noopener\" title>food<\/a> (<a href=\"https:\/\/www.washingtonexaminer.com\/tag\/mcdonalds\/\" target=\"_blank\" rel=\"noopener\" title>McDonald\u2019s<\/a>, Popeyes) to hardware (ACE) to hospitality (Red Lion) to haircuts (Great Clips) to animal care (Woof Gang Bakery and Grooming), and so much more. These are boom times for franchise branding.<\/p>\n<p>This is doubly impressive when you consider that two different <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/backlog-of-u-s-asylum-claims-tops-1-5-million\/\" title=\"U.S. Asylum Claims Backlog Tops 1.5 Million\">recent presidential administrations<\/a> have pushed changes that would cut franchising down to size. Both former President Barack Obama and President <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/joe-biden\/\" target=\"_blank\" rel=\"noopener\" title>Joe Biden<\/a>\u2018s administrations have tried to pass something called the joint employer rule through the National Labor Relations Board, as a sop to trial lawyers and organized labor.<\/p>\n<p>If it is implemented, critics charge that the joint employer rule would open franchisers, the companies that create the brands, to greater liability and mass unionization drives. It would also likely cut down on the profitability and autonomy of franchisees, the smaller businesses that rent those brands. It could burden other industries as well, but the challenges to franchising border on existential.<\/p>\n<figure><figcaption>President Joe Biden speaks in West Mifflin, Pa., on Sept. 5, 2022, to honor workers on Labor Day. (AP Photo \/ Susan Walsh)<\/figcaption><\/figure>\n<p>How have franchises managed significant growth in spite of regulatory efforts aimed at the heart of their business model? It doesn\u2019t hurt that majorities in Congresses have objected to these efforts, one industry representative said.<\/p>\n<p>\u201cWe are grateful to the bipartisan majority in Congress who have stood up for franchising against the NLRB\u2019s joint employer rule,\u201d Michael Layman, senior vice president of government relations for the International Franchise Association, told the <em>Washington Examiner<\/em>. \u201cThree times Congress voted to nix this harmful policy.\u201d<\/p>\n<p>Most recently, the Republican-controlled House of Representatives voted to invoke the Congressional Review Act and disapprove of the new rule by a vote of 207 to 177. The Democratic-controlled Senate agreed to the resolution by a vote of 50 to 48. The bill landed on the Oval Office desk on May 1.<\/p>\n<p>Layman added, \u201cPresident Biden\u2019s decision to stand with the NLRB and against small businesses shows where his support lies.\u201d<\/p>\n<p>In vetoing the CRA resolution, which would have canceled the joint employer rule, President Joe Biden argued in a statement that the rule will \u201cprevent companies from evading their bargaining obligations or liability when they control a worker\u2019s working condition \u2014 even if they reserve such control or exercise it indirectly through a subcontractor or other intermediary.\u201d<\/p>\n<p>The president explained, \u201cIf multiple companies control the terms and conditions of employment, then the right to organize is rendered futile whenever the workers cannot bargain collectively with each of those employers.\u201d<\/p>\n<p>Congress then tried and failed to override Biden\u2019s veto. Whether or not supplying, say, uniforms and signage and milkshake machines really counts as \u201ccontrol[ling] a worker\u2019s working condition\u201d then became a matter for courts to sort out.<\/p>\n<p>Thus far, the rule isn\u2019t faring well in the judiciary. The U.S. Chamber of Commerce sued the NLRB. United States District Court Judge for the Eastern District of Texas J. Campbell Barker vigorously criticized and vacated the rule in a March 8 ruling.<\/p>\n<p>Barker found that NLRB had \u201clargely backhanded and thus failed to reasonably address the disruptive impact of the new rule on various industries.\u201d Franchised businesses, for instance, had about $825 billion of economic output in 2022, and more than 8 million workers.<\/p>\n<p>The judge wasn\u2019t willing to upset that economic apple cart based on what he found to be the government\u2019s flimsy rationale. He argued that the rule \u201cruns headlong\u201d into Supreme Court precedent and \u201cexceeds the bounds of the common law.\u201d<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/strong><\/p>\n<p>The NLRB can appeal Barker\u2019s ruling, but it may not fare better in other courts or in the U.S. Supreme Court down the road.<\/p>\n<p>If the joint employer rule does finally go away, most folks in the franchise industry will likely breathe a sigh of relief and then quickly get back to work. There\u2019s a great deal of food to be made, rooms to be rented, hair to be cut, and goods to be sold.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Business franchising in America shows steady growth over almost a decade, with establishments soaring from 697,943 in 2013 to 806,270 in present times, projected to reach 821,589 this year per data from Statista. Despite common stereotypes, franchised businesses encompass diverse sectors beyond fast food<\/p>\n","protected":false},"author":2692,"featured_media":2241530,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/05\/WB.WhiteHouse-1024x591.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2241529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/05\/WB.WhiteHouse-1024x591.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2241529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2692"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2241529"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2241529\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2241530"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2241529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2241529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2241529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}