Franchise businesses are worried the National Labor Relations Board decision over joint-employer status will “deflate” growth projections in 2015.
“Last month, the National Labor Relations Board (NLRB) moved to upend decades of law and practice by issuing a complaint against McDonald’s saying that it should be considered a ‘joint employer’ with its franchisees,” Steve Caldeira, president and CEO of the International Franchise Association (IFA), said in a release.
“The entire business model of franchising is endangered by this ill-conceived complaint.”
IFA’s released its Franchise Business Economic Outlook: 2015 on Wednesday, projecting more jobs and franchise locations this year, but said the NLRB’s decision could significantly impact that growth.
The report said franchise businesses are expected to add 247,000 new jobs, a 2.9 percent increase over last year to 8.8. million jobs, and the number of franchises will increase by 12,111, or 1.6 percent, to 781,794 establishments.