Obama's attack on franchising killed 375,000 jobs

Washington Free Beacon:
An industry study found that the Obama administration's crackdown on franchising has cut hundreds of thousands of job openings and dealt a $33.3 billion blow to the economy each year dating back to 2015.

A report put out by the International Franchise Association and a Chamber of Commerce found that the Obama administration provoked an "existential threat" to the franchise model in which small business owners operate under the umbrella of a national corporate brand. The Obama administration departed from decades of precedent when the National Labor Relations Board held that parent companies could be held liable for labor violations committed by franchisees. The report estimated that the new joint employer standard set curtailed expansion in the industry, leading to between 142,000 and 376,000 lost job opportunities—a 2.55 to 5 percent reduction in the workforce.

"All of this economic cost was predictable and avoidable," IFA spokesman Matthew Haller said. "Franchise owners have incurred significant losses."

The study was conducted by the Chamber of Commerce's Dr. Ronald Bird, who served as chief economist at the Labor Department during the Bush administration. Bird said the industry had already witnessed a "chilling effect" that has caused parent companies to rein in their growth plans and ramp up litigation costs. Franchisees have suffered the most under the Obama era rules, as many now face heavier legal costs to stay in business. Litigation costs grew 93 percent in the industry and the nation's 233,000 franchisees have lost an average of $142,000 in revenue, according to the report.
The Obama NLRB was an example of what was wrong with his presidency.  They initiated control freak policies which killed jobs and reduced commerce.  They hurt the very people they claimed they intended to help by putting them out of work. 

Franchising has been an engine of job creation and wealth creation for those with an entrepreneurial spirit.  People can start a business using the franchisor's expertise and marketing experience with training to making them successful.  Several franchisees have become multi-millionaires and have created thousands of jobs for low skilled workers giving them an entry into the job market.

The Obama approach of was misguided from the beginning,  It demonstrated how out of touch the Democrat administration was with an important aspect of the US economy.


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