John Burnett — BIG Labor Union Attacks U.S. Franchise Model

John Burnett is a financial services executive with over 20 years of experience in risk management, operations, governance and compliance at some of the world’s top financial services and business information companies, such as Citi, McGraw-Hill Financial, Merrill Lynch and Morgan Stanley. In 2013 he was the New York City Republican candidate for New York City Comptroller. 

U.S. News & World Report:

"Does anyone remember a time when franchises were not a vibrant part of the American business landscape? For decades, tens of thousands of individually owned businesses with iconic names such as Burger King, IHOP, Jiffy Lube and Howard Johnson’s have channeled the entrepreneurial spirit of men and women, provided jobs to millions of people and contributed to economic life in communities in every corner of the country.

 Now, however, the franchise business model that has flourished for over two generations is under attack. The Service Employees International Union, as part of a national campaign to bolster its membership and finances, is leading an assault on franchise businesses. If the unions prevail, nearly 800,000 small business owners who employ more than 8 million workers could face economic uncertainty, even bankruptcy, and thousands of other would-be entrepreneurs could be deterred from pursuing their dreams and creating additional jobs, according to a recent industry report; meanwhile, franchisees are expected to create nearly a quarter million new jobs in 2015 alone. In addition, the franchise model, which involves less risk than that typically associated with a small business startup, has been especially attractive to aspiring women and minority entrepreneurs. Around 20 percent of franchises were owned by minorities in 2007, compared to 14.2 percent of non-franchised businesses."

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