The National Labor Relations Board’s (NLRB) 2015 Browning-Ferris decision expanded joint liability for franchise businesses and replaced the longstanding direct and immediate control standard with a broader joint employer approach, increasing litigation, reducing economic output, and costing  job opportunities nationwide.

• Increased litigation against franchise businesses: From 2015 through 2017, the expanded joint employer standard led to a 93% increase in litigation against franchises. The broader standard added legal uncertainty and costs for franchise businesses.

• Cost franchise job opportunities: The expanded standard resulted in 376,000 lost job opportunities nationwide.

• Limited support for franchisees and workers: The continuing threat of joint employer liability has discouraged national brands from offering independent franchisees and their employees health plans, retirement benefits, shared training programs and tuition support.

• Reduced economic output: The 2015 to 2017 period resulted in $33.3 billion in lost economic output.

• Source: https://www.franchise.org/wp-content/uploads/2026/05/AFA-Backgrounder-2026.pdf
• Source: https://savelocalbusinesses.com/wp-content/uploads/2026/07/CSLB-AFA-Myth-vs-Fact.pdf