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IFA: key to continuing job growth is tax reform, revising work week definition

Franchise businesses will create jobs at a faster pace than the overall economy in 2015, as it has in each of the last four years.

April 10, 2015

Franchise businesses will create jobs at a faster pace than the overall economy in 2015, as it has in each of the last four years, according to a statement from the International Franchise Association.

The Franchise Business Economic Outlook's quarterly update, prepared by IHS Economics, reported that employment and output growth for the franchise sector will increase over the previous year, a finding consistent with the yearly forecast released in January.

"Today's report underscores the importance of a healthy franchising sector to the growth of the overall economy," said IFA President & CEO Steve Caldeira, CFE in the statement. "Franchise small businesses are independent and locally owned. They are key drivers of job creation in a still slowly improving economy. However, the franchise sector could create even more jobs if lawmakers at the local, state and federal levels focused on pro-growth policies instead of erecting more and more public policy and regulatory hurdles that hamper growth."   

Caldeira said the key to helping franchises grow and create more jobs is to pass comprehensive tax reform and change the definition of a standard work week to the traditional 40 hours in the Affordable Care Act.

The National Labor Relations Board the Service Employees International Union hopes to revise the "joint employer" standard for franchisors and franchisees, IFA said. In response, business groups including IFA, the U.S. Chamber of Commerce and the National Restaurant Association have formed the Coalition to Save Local Businesses to oppose the NLRB's ruling and influence Congress to rein in the NLRB's actions.