The PRO Act Would Ruin Franchise Businesses!
The Protecting the Right to Organize or PRO Act (H.R. 842) has been reintroduced in both the House of Representatives and Senate, having previously passed the House in 2020.
Plainly stated, this far-reaching legislation would eradicate the franchise business model, which comprises over 760,000 establishments that employ over 8 million individuals and contribute $780 billion of output to the U.S. economy. We expect a new vote on the legislation in early March – and we need your help to protect franchising as we know it!
The PRO Act would harm all franchise owners and brands in the country by creating a harmful and expansive legal standard that effectively turns franchise owners into middle managers and increases legal liability for franchise brands. Under this new rule, franchisors could be considered the direct employer of the franchise owners in their system, as well as the employees of those owners. Such a change would take away the equity and independence of franchise small business owners and would put their success and livelihoods in jeopardy.