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September News Round-Up

Well, this month went by quickly! Seems like we were just posting an end of summer ode a week ago, but here we are—October looms ahead. In the spirit of keeping you as informed as possible, here are some of the most impactful industry news items from September:

IFA Hits Back at Joint Employer Model

In the middle of this month, as part of the International Franchise Association’s Action Network Event, hundreds of franchisors and franchisees descended on the Capitol Building in Washington to lobby against the passage of the “Joint Employer” issue. What exactly is at stake? In August of 2015, the National Labor Relations Board (NLRB) issued a ruling in a Browning-Ferris Industries case which adopted a broad-based joint employer standard. The updated standard references “indirect” or “potential control” of employees, which means franchisors could be held liable for a franchisee’s employees. The IFA-led group is lobbying for relief in the form of the “Save Local Businesses Act”, which aims to better define exactly what is defined as a “joint employer.” The act goes further, defining that employers must “directly, actually and immediately” exercise significant control over the primary elements of employment to be so considered and thus liable for any violations of workers’ rights. At the time of this writing, there appears to be broad support in the House of Representatives, but this issue will continue to bear importance on the industry as a whole.

Arby’s has Good FORTUNE

Arby’s Restaurant Group picked up a pretty prestigious designation this month, as the franchise QSR has been named to FORTUNE’s 100 Best Workplaces for Women list. This award marks the first appearance on this list, having previously been singled out by the same publication for being one of the top-100 Best Places for Millennials to Work. Paul Brown, CEO of Arby’s Restaurant Group, felt quite honored by the distinction, stating, “We’ve worked hard to build a culture that’s centered on hospitality and innovation. We strive to promote values like Make a Difference, Play Fair, and Dream Big, which helps to create a work environment that is equitable and inclusive to all of our diverse workforce.” According to the company, its workforce of 25,000 is 60 percent women. In addition, Arby’s Restaurant Group’s Product Innovation, HR, and IT functions are all headed by female executives.

Top-5 Franchisors

Checking in with the good folks at Entrepreneur’s Franchise-500 List, here is a current look at the top five Zors:

  1. 7-Eleven, Inc.
  2. McDonalds
  3. Dunkin’ Donuts
  4. The UPS Store
  5. Jimmie John’s

Hurricane(s) Relief Continues for Franchise Industry

The franchise industry continues to step up with relief aid efforts for victims of Hurricane Harvey. These three franchisors rolled up their sleeves for the struggling residents of Houston this past month:

Jack in the Box provided free meals to uniformed first responders and county officials and its foundation contributed $50,000 to the American Red Cross.

McDonald’s announced a donation of $1 million to the American Red Cross, in addition to a $250,000 employee matching program.

Pet Supplies Plus provided $30,000 worth of pet supplies and food to local Pet Supplies Plus locations in and around Houston, which were then forwarded to local Houston shelters and humane societies most in need of assistance.

Relief efforts are ongoing for Hurricanes Harvey, Irma and now Maria. Affected areas include Texas, Florida and now most urgent—Puerto Rico. To donate, please visit: www.redcross.org.

September was indeed a whirlwind, both literally and figuratively. Next month, October heralds the start of the 4th fiscal quarter and is sure to bring us additional and exciting updates from the world of franchisors. Stay tuned!

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As a franchisor, you’ll want to know which existing and potential franchisees best fit your business concept. Proven Match is the proven solution in determining those factors. Through our proven behavioral assessment techniques, predictive analysis becomes predictive success for your franchise concept. If you’re ready to show your leadership by getting started, give us a call and we’ll put you on the path to a more productive year in 2017.

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