Work Through the ‘Politics’ of Franchise Law!
Almost the moment the election was decided, more and more small businesses began to ‘shout-out’ about the fact that they will not be able to keep employees; they will have to raise prices; they will have to curb their growth…all because of the fact that they will not be able to afford ‘Obamacare.’
Franchises are coming out one by one commenting on the fact that things will have to change for the worse no matter what. However, what this actually means, is that more and more franchises need the help of a franchise lawyer who literally specializes in how to help and support the growing franchise community.
It was on June 28th of this year that International Franchise Association President and CEO, Steve Caldeira, released a statement following the decision by the U.S. Supreme Court to uphold the individual mandate provision set in the ‘Affordable Care Act.’ And, with his statement, many franchisers and franchisees felt more than a little bit of fear.
Mr. Caldeira said that ‘undue burdens’ were being placed on the franchise/small business community, and that ‘small business owners who continue to struggle in a still sluggish economic climate’ were looking at major problems in the future. It was stated that 3.2 million jobs at franchise businesses will be put at risk due to the employer mandate provision, which will soon ‘stop the creation of new jobs and halt any and all business growth.’ As the IFA continues to work with Congress to basically ‘start over’ with a health care reform effort that will provide access to healthcare at an affordable cost for franchise small businesses and their employees, franchisers are looking toward the future with far more confusion then actual fear.
For those who don’t understand the intricacies of the law, many franchisers have come out with true worries, including how the hundreds of franchisers and multi-unit franchisees operating with fifty or more employees will be at a huge disadvantage when compared to their ‘smaller’ competitors who do qualify for breaks under this law.
The hard part for people is learning how to work through this problem in order to grow their company without reducing staff, or hiring more part-time workers in order to get below that threshold. Others who are close to 50 employees have already said they will not even bother to grow their businesses (i.e., they won’t expand staff at already operating locations, and/or simply not open additional locations) in order to remain below that all-important ‘fifty-employee’ mark.
However, when taking the politics out of the equation, the bottom line is that franchisers are facing monumental decisions – and hearing that an increasing number are simply giving up by allowing the law to ban any and all growth, is the real fear here. Not to mention, some are allowing the law to immediately discourage any and all entrepreneurs who are looking to capitalize on the incredibly successful ‘franchise business model’ to begin a business, become their own boss, and decrease the unemployment rate.
But in actuality there are other ways to get through this particular issue without laying off more of the American people and putting a ‘halt’ on small business growth. From marketing and advertising to social media, to a variety of other ways – learning the intricacies of small business rules and regulations can actually help build companies and improve America’s economic state.
On one side of this debate is that employers play a huge role in the nation’s healthcare system; hence, they should be allowed to make their own choices when it comes to employee healthcare, and not the government. But as we look forward to expand our franchise system throughout the country, there are most definitely ways ‘good things’ can be accomplished by a small business…with the right ‘team’ behind them.
Just this week a large franchise – Applebee’s restaurant – made comments about having to implement a hiring freeze. However, there is far more information out there than just what you hear on the news. This is a tough time for America, however small business is something that ALL people – no matter what political denomination they may be – want to see grow, expand and become healthy. And in order to best accomplish this is by having a lawyer who knows the ‘ins-and-outs’ of all franchise laws, rules and regulations. Having a lawyer who is able to work with a franchise to increase their growth, is absolutely essential.
As 2013 edges closer, and the political factions (hopefully) join together to make the right calls that will benefit the small business world, having Mike Rosenthal as your franchise lawyer will allow you to not stop in your tracks, but push forward!
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