US-based International Franchise Association (IFA) has weighed in to Australia’s policy making, warning lawmakers that the Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017 will cripple the Australian franchise industry and lead to fewer jobs and slower economic growth.

“Australia is one of the world’s most franchised economies, and the proposed bill is threatening the franchising model as we know it,” said Robert Cresanti, President and CEO of IFA.

A similar attempt to expand employer liability, known as joint employer, is in the process of being overturned in the US, the IFA reported.

“Expanding liability for employment actions in the US proved to be wildly unsuccessful,” said Shelly Sun, founder and CEO of BrightStar Care, home health care services with a network of more than 300 franchises.

“As a franchisor myself, I was forced to reevaluate how I serviced each of my franchisees, offering fewer employment resources that helped these smaller businesses grow and survive. Australia has prospered for decades using the franchise model and should not underestimate the potential economic hardships it may cause.”