By Daniela Sirtori, Bloomberg

The International Franchise Association, whose members range from McDonald’s to Hilton, endorsed President-elect Donald Trump’s pick for labor department secretary.

Lori Chavez-DeRemer, a former member of congress from Oregon, “is the right person to lead the Labor Department to enable the franchise business model to grow and thrive in the coming years. We encourage all senators to support Lori Chavez-DeRemer for Labor Secretary,” IFA President and CEO Matt Haller said in a statement Thursday.

The endorsement is a sign that business groups are having their concerns allayed after initial hesitance about Chavez-DeRemer, who was one of the few Republican co-sponsors of a sweeping pro-union labor law reform bill, the PRO Act.

The legislation included language that would have made it easier for companies to be considered “joint employers,” meaning they would be liable for the treatment of workers not on their payroll, such as those employed by franchisees. Still, last year Chavez-DeRemer voted with other Republicans in favor of nullifying a similarly broad joint-employer standard issued by President Joe Biden’s appointees that ended up being overturned in court.

“When the future of main street franchises was on the line, Congresswoman Chavez-DeRemer stood up in support of America’s 830,000 franchised small businesses and their nine million employees,” Haller said in the statement.

The IFA and members including McDonald’s, Yum! Brands, Wendy’s, and Restaurant Brands met with Chavez-DeRemer on Tuesday, Bloomberg News reported. The parties discussed the PRO Act as well as the joint-employer standard.

Under the franchising system, business owners pay for the right to run established brands, but they each manage their own operations. At McDonald’s, for example, franchisees run about 95% of US locations. They hire their own employees and set prices independently.

The IFA tends to be active in the confirmation process for labor nominees and opposed Julie Su, Biden’s latest nomination for labor secretary.

— With assistance from Josh Eidelson

Search