Franchising in the United States has seen consistent growth over the past decade. According to Statista, the number of franchise establishments increased from 697,943 in 2013 to 806,270 in recent years, and is expected to reach 821,589 establishments this year.
While fast-food establishments are often associated with franchising, a wide range of businesses are now franchised, including hardware stores, hotels, hair salons, pet care services, and more. This diversity in franchising has led to increased success in branding for franchisers.
Despite efforts by both the Obama and Biden administrations to pass the joint employer rule through the National Labor Relations Board, franchise growth has continued. Critics argue that this rule would increase liability for franchisers and potentially lead to mass unionization drives, impacting the profitability and autonomy of franchisees.
However, with bipartisan support in Congress, efforts to pass the joint employer rule have been halted multiple times. Despite President Biden’s veto of a Congressional Review Act resolution, which aimed to cancel the rule, the franchise industry has continued to thrive.
The rule has faced challenges in the judiciary as well, with a federal judge criticizing and vacating the rule for its impact on various industries. The future of the joint employer rule remains uncertain as the NLRB may appeal the ruling.
Overall, if the joint employer rule is eventually eliminated, the franchise industry is likely to see relief and continued growth. Businesses across a variety of industries will be able to focus on their operations and continue providing goods and services to consumers.
