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Updates


The SEIU's Flawed and False Attack on Franchising

The Service Employees International Union (SEIU) has launched yet another flawed and false attack on franchising. A narrow and self-serving survey released last week claims that franchisees are dissatisfied with the state of their businesses and relations with the franchisors. In fact, the exact opposite is actually true according to other independent surveys, renewal rates of government-mandated documents and even the SEIU’s own survey. Franchise Business Review, an independent industry analyst which has surveyed more than 200,000 franchise business operators over the past decade, conducted its most recent survey and found high levels of satisfaction among franchisees. Key findings included:

  • 82.2% of franchisees replied “Good”, “Very Good”, or “Excellent” in response to:
    “Overall, how would you rate your franchisor and the opportunity provided by this franchise system?”
  • 80.7% of franchisees replied “Good” “Very Good”, or “Excellent” in response to:
    “Overall, how would you rate your satisfaction with this franchise?”
  • 88.7% of franchisees replied “Agree” or “Strongly Agree” in response to:
    “I enjoy operating this business”

The findings stand in stark contrast to the flawed SEIU survey, which was conducted only to advance its quest to have the National Labor Relations Board (NLRB) alter the current “joint employer” standard. Decades of legal precedent dictates that franchisors and franchisees are not joint employers and it is the franchisee that is solely responsible for the setting of wages for employees. This is a key reason why so many small business owners are drawn to the franchise model – it allows for autonomy in day-to-day operations with the recognition of an established brand –the very thing the unions want to undermine and destroy.

The SEIU’s fledging effort to stir controversy last week succeeded, but not in the way it had planned. Keith Miller, a California-based SUBWAY franchisee and Chairman of the Coalition for Franchisee Associations (CFA), who participated a call with reporters organized by the SEIU releasing the survey later publicly dismissed the SEIU’s claims that he and other franchisees are in any way supportive of discriminatory polices targeted toward franchisees or their clearly AstroTurf-oriented , “We Are Main Street” web site. This campaign aims to pit franchisees and franchisors against each other to the detriment of the business model, communities and consumers alike.

In his recent blog post disavowing any support of the SEIU, Miller stated, “Media stories have concentrated on me being representative of franchisees joining the fight for $15 with the unions or the We Are Main Street campaign, none of which I support. Any characterizations that I do are false.” Clearly, the SEIU is willing to stop at nothing, including using and misrepresenting franchisees’ interests to advance their agenda.

Additionally, in Miller’s words, “Franchising is a vital industry employing millions of Americans and providing upward mobility and business ownership opportunities like no other industry.”

We could not agree more with this statement. That’s why IFA’s Franchise Action Network (FAN) is so important to the continued success of franchising and protecting the franchise business model. The FAN is the campaign that actually represents the voices of franchisees across the country and allows them to tell their success stories of opportunity, growth and community involvement. It allows the true and honest voices of franchisees across the country to advocate on behalf of their business.

Aziz Hashim, International Franchise Association (IFA) Vice Chairman, was quoted yesterday in an article in the Chicago Tribune that franchisees need, “to share their stories of starting out earning minimum wages or how they kept open their stores to save jobs during the Great Recession.”

There’s no question franchising is under attack. And now there can be no doubt the SEIU will do or say anything – including putting words in the mouths of its opponents – as it works to destroy and dismantle the franchise model. To protect your business and combat the growing threat from the unions and the front groups that claim to represent your interest please join the Franchise Action Network TODAY!

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