“Repeal of this job-killing provision is essential if small business job creators are to drive the growth of a stagnant economy and put millions of unemployed Americans back to work,” said IFA President and CEO Steve Caldeira. “We thank these members of Congress for their leadership and urge the Senate to heed the House’s action earlier this year to repeal a regulation that, according to new research, will eliminate millions of jobs in the franchise sector.”

Sen. Hatch is the sponsor of S. 20, The American Job Protection Act, which includes a repeal of the Patient Protection and Affordable Care Act  provision requiring employers with more than 50 full-time employees to offer affordable health insurance or pay a penalty of $2,000 per employee.  The House equivalent, H.R. 1744, is sponsored by Reps. Boustany, Tiberi, and Barrow, and passed the House earlier this year.

A recent study by the Hudson Institute for IFA concluded that, without significant changes to the health care law, 3.2 million full-time employees at tens of thousands of franchise businesses will be at risk of losing their jobs. The report also found that many franchisors and franchisees, who often own groups of establishments, such as restaurants, hotels, retail and service businesses, will be at a “comparative disadvantage” relative to other businesses with fewer locations and fewer employees. The law discourages franchisees from owning and operating multiple locations, when the combined employment exceeds 50 or more full-time workers.

As part of IFA’s ongoing lobbying campaign to reach lawmakers and opinion leaders about the impact of the employer mandate, IFA joined
at
a
press conference on Capitol Hill yesterdaywith the U.S. Chamber of Commerce, Sen. Hatch and Rep. Boustany,

who reiterated IFA’s study
 showing the employer mandate threatens to put many small businesses at a disadvantage in competing with businesses that have fewer employees and are not subject to the same regulations. Meanwhile, an
op-ed piece by Caldeira appeared in The Hill newspaper and, David Barr, a KFC multi-unit franchisee from Atlanta, Ga., and member of IFA’s Board of Directors,

appeared on Fox Business
 yesterday to discuss the impact of the employer mandate on the job-creating abilities of his business and his colleagues in the franchise industry.

IFA’s number one priority for health care is to ensure that health insurance is more affordable for franchised businesses and their employees. For a decade, the IFA has supported legislation that would enable small employers to band together through national associations or franchise systems to purchase health insurance. IFA also supports proposals that strengthen consumer-oriented, affordable health insurance options.

“While we do not believe that PPACA achieves meaningful, long-term control of U.S. health care costs, the IFA is committed to reducing the cost of health insurance for small businesses and their employees, and we strongly encourage Senators to develop new solutions that provide meaningful cost-controls and consumer-driven solutions,” said Caldeira.

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About the International Franchise Association

The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating 50 years of excellence, education and advocacy, IFA protects, enhances and promotes franchising through government relations, media relations and educational programs. Through its awareness campaign highlighting the theme,
Franchising: Building Local Businesses, One Opportunity at a Time,IFA promotes the nearly 18 million jobs and $2.1 trillion of economic activity generated by franchising. IFA members include franchise companies in over 90 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.