Chairman Williams: “A Small Part in a Big Company: Examining the Power of Franchising in the American Economy”

Summary

Opening statement of Chairman Roger Williams, as prepared for delivery, dated May 15, 2025, for a House Committee on Small Business full committee hearing titled "A Small Part in a Big Company: Examining the Power of Franchising in the American Economy." The statement says the committee will hear from franchisors and franchisees and cites an estimated 831,000 franchise businesses employing nearly nine million workers. It says the NLRB's Joint Employer Rule would have cost franchises an estimated 33 billion dollars in additional costs each year had courts not struck it down. It also urges extending the Tax Cuts and Jobs Act tax cuts and closes by yielding to Ranking Member Velázquez.

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Opening Statements

Chairman Williams: “A Small Part in a Big Company: Examining the Power of Franchising in the American Economy”

May 15, 2025

WASHINGTON, D.C. – Today, the House Committee on Small Business is holding a full committee hearing titled “A Small Part in a Big Company: Examining the Power of Franchising in the American Economy.”

Chairman Roger Williams’ opening statement as prepared for delivery:

Welcome to today’s hearing, “A Small Part in A Big Company: Examining the Power of Franchising in the American Economy.”

In today’s hearing, we will hear from franchisors and franchisees on all aspects of the franchise business model. We will focus on how we in Congress can protect this model to ensure generations of Americans have a chance to achieve the American Dream.

Franchises operate in every corner of America. My family has been a part of the franchise model for over 80 years in the car business. I’ve seen firsthand the benefits to consumers, manufacturers, and most importantly, our local communities.

Whether you are in a small town or a big city, you are likely to encounter locally owned franchises that support and drive the local economy. Across the United States, there are an estimated 831,000 franchise businesses, employing nearly nine million workers. These franchise establishments generate close to 900 billion dollars in economic output – which is roughly three percent of the U.S. GDP. When franchises thrive, the American economy thrives too.

Unfortunately, the franchise business model came under attack under the prior administration. The Biden-Harris National Labor Relations Board – the NLRB – issued its disastrous Joint Employer Rule, which threatened to upend the franchise business model. Congress fought this misguided attack on a bipartisan basis, only to be met with Biden’s veto.

If the courts had not struck down this Joint Employer Rule, franchises would have incurred an estimated 33 billion dollars in additional costs each year.

Franchises face yet another uphill battle as Democrats are fighting tooth and nail to oppose extending President Trump’s pro-small business Tax Cuts and Jobs Act tax cuts.

Failing to extend the TCJA will result in the greatest tax hike on the American people in history.

Rather than being undermined through excessive regulation and being subject to Democrat tax hikes, the franchise business model should be supported. This model offers small business owners access to resources and tools to assist with many challenges and make the dream of becoming a business owner more attainable.

It is an honor to work alongside my colleagues and President Trump to create commonsense policies that uplift our nation’s small businesses through deregulation, lower taxes, and greater access to capital.

I would like to thank our panel of witnesses for taking the time away from their businesses to participate in this important hearing. We look forward to your testimony.

With that, I will yield to our distinguished Ranking Member from New York, Ms. Velázquez for her opening remarks.

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