Franchise News Alert! Obamacare Will Definitely Stop Franchise Owners From Growing Their Businesses

franchise growth to stop

I’ve decided to purchase 500 made in America stop signs.

Here’s what I’m going to do with them;

I’m going to place them in front of every franchise company’s headquarters…every multi-unit franchisee’s stores or restaurants that have publicly said that they can’t grow their businesses because of the Affordable Care Act. That way, their customers and even their prospective franchisees will know ahead of time that they’re dealing with an anti-growth small business.

 

A Load Of Hooey

That’s what it is.

I’m not sure if I like some of things contained in the Affordable Care Act. At last count, there were almost 3,000 pages of who knows what contained in the bill. According to Fox Nation, the document has more pages than the Bible. (Old Testament or the new one?) Anyway…

Think about the absurdity of the following statement, made by the CEO of FASTSIGNS;

I know hundreds of franchisors and multi-unit franchisees that have 50 or more employees. They will now be at a significant disadvantage compared to their smaller competitors who qualify for breaks under the law.”

Maybe so. Maybe not. Catherine Monson goes on to say that, “Some will reduce staff or choose to hire more part time workers to get below that threshold. Others who are close to 50 employees have said they will choose not to grow their businesses — either by not expanding staff at current locations or not developing additional locations — to remain below the critical 50-employee mark.”

Really, Catherine? 

 

Franchises Will Stop Expanding From This Day Forth

That’s right; every franchisee who’s ever dreamed about expanding his or her business, won’t. They’re going to set their franchise businesses on Stop, and wait to see if the Affordable Care Act will be repealed?

Didn’t you know that

All franchise owners operate like that? They take a wait and see approach. And, if their businesses lose market share-because they’re in wait and see mode, so what? I guess that must be life as a franchisee-a robotically-engineered one, at least.

Obamacare Robot

That’s because one would have to be a robot to do something that stupid. Now, in case you don’t know a lot about robots, here’s a brief lesson…real brief;

Robots don’t think for themselves; they’re programmed to think in a certain way. No matter what.

 

It’s Really About Obama

Unless you’ve taken a hiatus from watching the news for the past year or three, you’ve probably noticed that there’s been a little bit of discord in Washington. For some odd reason, some of our elected officials have taken it upon themselves to oppose anything that President Obama does-or attempts to do. It doesn’t matter if his proposals would help the country or not. That’s because these people can’t stand President Obama. Country first? Right.

If I owned a thriving 48-employee franchise business

and, I wanted to see it continue to grow

I’d do whatever it took to make it happen.

Heck, I’d even hire another employee or two

if I felt it would increase my revenue.

 

That’s because I’m in this to win. And, so are today’s franchisees and franchise executives.

Screw the politics.

What do you think? Would you Stop your businesses’ growth because of Obamacare?

Tell me.

Obamacare myths

 








  • http://thefranchiseking.com/about-joel-libava-the-franchise-king The Franchise King

    Dear Franchise King Blog readers,

    I need to add two more things here.

    1. I have never had a franchisee (who I’ve helped get into business) call me to tell me that, “business is booming, but I’m not going to continue growing it because Obamacare really worries me.’

    2. I do marketing….franchise lead-generation, for a select number of franchisors. They call me because they want to grow their businesses. I’ve never had a franchise executive call me to tell me to stop marketing for them because they’re going to wait to add franchisees-because of Obamacare fears.

    The Franchise King
    Joel Libava

    • Roper Ryanp

      Whoever wrote this is a complete moron! You don’t understand economics and how business works if you don’t thin Obamacare is going to stop growth!

      • http://thefranchiseking.com/about-joel-libava-the-franchise-king The Franchise King

        No name-calling, Roper.

        The good franchisors…the ones that have adapted and that CAN adapt to our always-changing world, will come up with ways to work within the guidelines.

        I have faith in that.

        • White

          “franchise lead-generation, for a select number of franchisors.”

          Im not sure but what I think I see here is the fact your
          represent Franchisers. To sell a franchise to a franchisee they will not be
          affected by how many employees that particular franchisee has. This is because it’s
          a completely separate business paying Royalties to the Franchiser. Now to be a
          franchisee for KFC for example is not as simple as asking to be a part of it
          all. First requirement to be a KFC franchisee you must have at least $750,000
          in liquid assets.

          Next, in the KFC demographic in most markets you need 3 or
          more stores to earn enough revenue to pay the royalties and retain enough to
          remodel your stores every 5 years or so as it seems to be KFC’s pattern to
          force its franchisees to do so. Now, add OBAMA care. You will need a huge
          surplus to cover the costs of the franchise fees along with operating costs and
          insurance. Volume revenues means if I sell 10 million pizzas then the cost per
          pizza is only a $0.14 increase to cover the costs. If I sell 100,000 the cost
          per pizza is much higher.

          Obama Care may not affect Franchisers but will I believe
          affect the franchisee. Remember, the fast food industry has always been highly competitive,
          in addition it was never a Skilled labor position, it was where kids went to
          get work experience not a career or retirees to supplement income. I do believe
          your blog is somewhat misleading as you earn your income getting people to buy
          into franchises

  • http://twitter.com/TiceWrites Carol Tice – Writer

    Ha! I think great minds are thinking alike here — did you see my post for Forbes — Will Small Business Owners Kill Their Companies to Thwart Obamacare? http://www.forbes.com/sites/caroltice/2012/07/17/will-small-business-owners-kill-their-companies-to-thwart-obamacare/

    • http://thefranchiseking.com/about-joel-libava-the-franchise-king The Franchise King

      Pretty weird. I stopped by Forbes.com and commented.

      JL

  • Matt Starr

    Joel,

    Great article. I am a 45 unit franchisee in 4 states. I believe the Affordable Health Care Act is an opportunity for our company to INCREASE growth and profits! Thank you for reaffirming my belief.

    • http://thefranchiseking.com/about-joel-libava-the-franchise-king The Franchise King

      Good for you!

      Keep on growing…and thanks a lot for stopping by.

      JL

  • Annabel J.

    I think you’re completely right. This is a political issue– the franchise industry just doesn’t like Obama. I really can’t believe that a business that is growing and turning a profit will cease to grow (and therefore inhibit greater profits) just because it has reached 50 employees.

    As a side note, the Affordable Care Act is far from one of the biggest tax increases in our nation’s history, as Catherine Monson said in the same Washington Post piece you quoted. Bush and Reagan instituted larger increases than Obamacare.
    http://blog.franchiseclique.com/blog-entries/what-does-the-affordable-care-act-mean-for-franchising/

    • http://thefranchiseking.com/about-joel-libava-the-franchise-king The Franchise King

      Thanks for popping by.

      What a mess!

      JL

  • Sidnee

    Thank you for writing this. I love when I find information from people who know what they are talking about to explain things to those who don’t. Businesses will hire if it benefits them financially–not because of what political party is in office. I will be referring people I have “discussions” with to this particular article. Thank you for giviing me some ammo to work with. :)

    • http://thefranchiseking.com/about-joel-libava-the-franchise-king The Franchise King

      Thanks for reading the article and for your comment, Sidnee!

      JL