Female small business owners of popular franchises need not worry about destructive federal labor regulations any longer. Instead, they can focus on building their dreams.

A Biden-era labor regulation restricting businesses, particularly franchises, is now dead and hopefully for good.

Last week, the National Labor Relations Board published a final rule rescinding the Biden-era joint-employer regulations and returning to the previous Trump 1.0 rule. The newly appointed Trump NLRB is returning to a standard that preserves and protects business models like franchising instead of heralding their demise. 

Background

Independent Women has been vocal in opposition to the Biden-era joint employer rule. In 2022, IWF submitted a public comment explaining that the proposed rule would cause harm to women-owned businesses by burying them in paperwork and raising risks:

  • Women’s liability risks for a host of workplace issues would skyrocket.
  • Women subcontractors would lose work. 
  • Business costs would rise sharply, draining revenue from business growth to compliance costs.
  • Female business owners would lose their independence and be relegated to store managers.

IW joined dozens of other national organizations representing millions of small businesses and franchises in opposition to the final rule.

In 2024, our sister organization, IWV, expressed support for Congress to overturn this rule using the Congressional Review Act (H.J. Res. 98). We highlighted the harms of the final rule to small businesses and franchises, particularly those owned by women. We were pleased when the CRA passed the House and Senate. Unfortunately, former President Joe Biden vetoed the CRA. 

Through successful court challenges, the rule had been tied up. Now, the rescission by the NLRB puts an end to a decade-long fight.

Why It Matters

Franchising is part of the American dream. Minorities, immigrants, young people—anyone with a dream to run their own business—have found great success owning and operating stores, restaurants, and businesses for products and services. Franchising has also been a great pathway for women’s entrepreneurship. About a third of franchise businesses are women-owned, according to the International Franchising Association (IFA).

Touching every aspect of our lives, franchises support communities, employ local workforces, and provide services that make our lives easier and safer. Think of Smoothie Cafe, McDonald’s, Domino’s, The HoneyBaked Ham Company, Kiddie Academy, Celebree Schools, and Jiffy Lube.

Bottom Line

Americans, especially women, deserve to run the businesses of their dreams. Our economy thrives on firms, small and large, growing, but heavy-handed government regulation strangles free enterprise.

The rejection of the Biden-era joint employer rule is a clear message that new leadership in Washington is committed to ensuring that small businesses, corporations, and franchises can start and grow unencumbered by useless, costly regulation.