Now that the initial shock of the presidential election is wearing off, people are shifting their focus to what’s next. And with that comes a significant number of questions and uncertainty about the true effect President-elect Donald Trump will have on our country — from business and the economy both here and abroad, to education, healthcare, international relations, and more.
Of course, we at Fish are watching closely how things unfold as it relates to small business and, in particular, the franchising industry. In 2016, franchising took some serious blows in the form of harmful legislation, including the joint-employer mandate, minimum wage, and the Affordable Care Act.
In a press release, International Franchise Association president and CEO Robert Cresanti urged President-elect Trump “to strike the massive regulatory state created by the practice of legislation through executive order and for Congressional leaders to repeal these unnecessary, harmful, and overly burdensome regulations, beginning with the newly-broadened joint employer standard and the Department of Labor’s overtime rule.”
We’re only two weeks removed from the election and it already seems a Trump presidency could work in franchising’s favor. Business Insider reported Trump’s administration is expected to strike down the National Labor Relations Board’s joint-employer ruling. He’s also planning to “repeal and replace” the Affordable Care Act — something Republicans have been promising, but failed, to do — which is more good news for franchising. On the minimum wage front, Trump previously has said the issue should be left up to the states, although he supports a $10/hour federal increase — not quite the $15/hour increase unions have been pushing for and many franchisees have opposed. And while more than 4 million workers will now be eligible for overtime pay as of Dec. 1, it’s yet to be seen if Trump will overturn it. But given his pro-business stance on most issues, Trump may amend it — yet another good thing for franchising.
Only time will tell how a Trump presidency will really affect franchising — both the short- and long-term effects — so 2017 will be a nail-biter of a year for small business owners. But if these initial reports represent Trump’s true stance on the issues, that’s good news for franchising.