MoreBSCAI's original press statement of January, 2004, utilized the words "franchise fees" in a manner that, for some readers, resulted in the impression that BSCAI views all franchise relationships as inherently suspect.
To be clear, and to the contrary, BSCAI recognizes and fully supports the importance of legitimate independent contractor relationships in the marketplace, and specifically the importance and effectiveness of business structures that utilize franchise relationships. BSCAI is fortunate to have a strong franchise base among its membership.
It is unfortunate that in many cases of illegal subcontracting, non-complying employers use so-called "franchise fees" to create the appearance of a legal subcontracting relationship where none exists. Many of our members operate franchise operations across the nation with great success and use this very effective business structure to expand their operations and service clients. A real challenge to our industry is the use of sham relationships that may be referred to as "franchises" in name, but are really nothing more than schemes to avoid the proper classification of workers and payment of attendant fiscal obligations.
The intentional misclassification of employer-trained and employer-directed janitorial workers endangers not only the continued development of proper franchises under a broad parent company, but also the ability of all of our members to continue hiring those who are transitioning into the workforce. All BSCAI members join in condemning practices that harm law-abiding contractors, individual employees, and the economy.
