Voters Think Franchise Workers Should Be Considered Joint Employees and Entitled to Collective Bargaining Rights
By Lew Blank
The franchise model of business is not something most people think about every day. According to new Data for Progress polling, only 1 in 10 voters say they’re “very familiar” with the franchise model.
But a new set of regulations that the Biden administration has pushed for over the past year would have a major impact on the nearly 9 million Americans who are employed by the franchise industry — including their ability to collectively bargain for better wages and working conditions.
The franchise model is used by some of the largest brands in the U.S. — from McDonald’s to 7-Eleven to Subway. Under the model, the parent company (the “franchisor”) grants permission to a small individual business owner (a “franchisee”) to operate one or more locations.
On a day-to-day basis, both franchisees and franchisors have influence over the operations of each franchise location. Franchisees run the business at the ground level, directly managing operations and hiring and training new employees. Franchisors, on the other hand, direct the network of franchises from more of a bird’s-eye view — controlling the products and services that are offered and regularly stepping in to provide support and oversight.
Under the Trump administration, franchise workers were only considered employees of the franchisees — not the franchisors. This prevented franchise workers from collectively bargaining with the franchisor for better wages and working conditions.
This classification was then reversed under the Biden administration. In October 2023, the National Labor Relations Board (NLRB) ruled that franchisors and franchisees are together the “joint employers” of franchise workers. Specifically, the rule stated that franchisors are employers of franchise workers because they have the “authority to control essential terms and conditions of employment.” This March, however, a federal judge in Texas struck this rule down.
A new survey by Data for Progress provided likely voters with a brief description of the franchise model, then asked them whether they think franchise workers should be considered employees of the franchisors.
The survey finds a majority of voters (54%) believe that franchise workers should be considered employees of the franchisor and entitled to collective bargaining rights. Only 30% say that franchise workers should not be considered employees of the franchisor, while 15% say they don’t know.
These results show that while the public’s knowledge about the franchise model of business is limited, voters — after learning how the model works — believe that franchise workers should be considered employees of the franchisor and entitled to collective bargaining rights.
Lew Blank (@LewBlank) is a communications strategist at Data for Progress.