Congress must stand up for franchisees and reinforce the American dream

A jarring poll from the Wall Street Journal/NORC showed only 36 percent believe the American dream is still alive — a significant drop from 52 percent a little more than a decade ago. Women were especially pessimistic, with only 28 percent believing in the idea of advancement for hard work.

While these numbers should concern everyone, as the daughter of Vietnamese refugees who fled a communist regime in search of a better life, this is especially personal. The American dream has always been more than a soundbite for me. The promise of America lies in the abundant opportunities available for those with an entrepreneurial spirit and a strong work ethic. I have lived the American dream and want others to have access to the same opportunities. 

As a businesswoman, I’ve seen government regulation, however well-intentioned, have unintended negative consequences. I know legislators can right-size regulations to enable small businesses to thrive. Today, I am proud to lend my voice and experience to organizations by working on behalf of small businesses and advocacy organizations, such as the International Franchise Association, to keep the American dream alive. 

I am hopeful common sense will prevail and my former colleagues will defend their constituent

Why is the American dream fading in the eyes of many? Unnecessary, misguided policies from Washington are a big factor.  

One of these unforced errors is the recent National Labor Relations Board joint employer policy which would make franchise companies liable for employees at any of the nearly 200 separately owned and operated franchise locations throughout our entire state.

The current proposal is slated to take effect in late February unless Congress intervenes and stands up for our nation’s businesses. 

Regrettably, this is not the first time this issue has reared its ugly head in DC. In 2017, I was one of only eight Democrats to cross the aisle and support legislation called the Save Local Business Act. I voted for the bill because it rolled back the joint employer rule that had become overly broad and harmful to economic opportunities. The Save Local Business Act restored a more appropriate balance of joint employers. 

Now, the new standard will have an even more far-reaching impact on businesses and our local economies — and it is critical that Congress acts. If the new standard is allowed to proceed unchecked, franchises will be considered joint employers, responsible for the actions of businesses over which they do not have daily control.

With the flip of a switch, franchisees and small business owners will go from independent operators to middle managers. The litigation and legal fees will spike.

The ensuing uncertainty was harmful to both employers and employees. Facing the prospect of more lawsuits and regulatory burdens, franchises would either pull back or increase their involvement in the day-to-day operations of their franchisees. Neither option is optimal. Meanwhile, the workers at these branches were left wondering about the chain of command. The confusion was not good for anyone.

People who go into franchising do so to fulfill their dreams of owning a business and building a brighter future for their families. 

According to data from Oxford Economics, franchising offers a path to entrepreneurship for all Americans, but especially to people of color, women and veterans. That entrepreneurial independence and those jobs hang in the balance right now, imperiled by an expanded joint employer rule. It should come as no surprise that some of the nation’s leading representatives for minority business organizations have spoken out against the policy. More broadly, 87 percent of franchisees voiced their concern if a franchisor took more control over their operations, according to Oxford.

Thankfully, there is robust and bipartisan support in Congress to stop this rule. A House vote has been scheduled on a Congressional Review Act resolution overturning the expanded joint employer rule. 

Without intervention, Americans face the harsh reality that upward economic mobility and entrepreneurial opportunity will be further diminished and access to the American dream will be even more elusive for future generations. 

Stephanie Murphy represented Florida’s 7th congressional district from 2017 to 2023 and is currently an advisor to the International Franchise Association.