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International Franchise Association: Supreme Court Ruling Puts Jobs At Franchise Businesses At Risk

In the aftermath of the U.S. Supreme Court's ruling on the Affordable Care Act and, specifically, the constitutionality of the individual mandate provision in the Act, the International Franchise Association released the following statement from its President & CEO, Steve Caldeira:

"We are deeply disappointed by the High Court ruling to uphold the Affordable Care Act, which places undue burdens on the franchise small business community. While it may have been ruled constitutional, the law is unworkable, unaffordable and wrong for our country's small business owners who continue to struggle in a still sluggish economic climate. By upholding the law, 3.2 million jobs at franchise businesses continue to be put at risk due to the employer mandate provision, thereby discouraging and disincentivizing the creation of new jobs and business expansion.

"The Affordable Care Act, and specifically the employer mandate, does not provide solutions to the cost and access issues it set out to address, but rather hurts the employees it aims to assist. IFA will continue to work with Congress to fully repeal the law and start over with a health care reform effort that enacts reforms that provide access to care at an affordable cost for franchise small businesses and their employees."

I know many small business owners and franchisors were watching this decision closely, and the general feeling in the industry is consistent with Mr. Caldeira's statement. I hope the Court's ruling won't have the significant, negative impact on the industry that many are predicting.

© Copyright 2020 Armstrong Teasdale LLP. All rights reserved National Law Review, Volume II, Number 182

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Armstrong Teasdale lawyers practice extensively in the areas of franchising and distribution, including the development of new franchise systems, preparation of franchise offering circulars, compliance with federal and state requirements, contract negotiation, trials and appeals in all courts, representation in arbitration proceedings, mediation, and assistance in evaluating the impact of these areas on other client operations.

Franchise and distribution lawyers review, analyze and stay current with legislation and regulations promulgated by government authorities. Additionally,...

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