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The Dwyer Group CEO Dina Dwyer-Owens on the impact of the health-care law on businesses.
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-- -- new healthcare law requires that many small businesses provide health care for employs or they face a fine.
And a lot of businesses save this requirement is forcing them to hold off on any new hiring.
Joining us now in a -- this explosive is -- -- always.
CEO of the Dwyer group Tina thank you for coming in appreciate it up by the way you may recognize this woman she was one of the stars of undercover bosses.
You remember that their reality series which I liked a lot.
Pasadena first of all overall picture how was a health care law affecting your business.
David unfortunately it's it's gonna hurt our larger franchisees that serve the the major markets.
I'm so you know this is -- it is complex enough in this is just another layer of complexity -- -- being -- And -- just think about franchising is we have folks come and that's day in and day out because businesses are ready toughened up in fact yesterday we -- -- first day of basic training of the new year.
We have fifty folks in basic training at Waco Texas.
And many of them had -- -- -- business 1520 and thirty years.
But they're searching for ways to make business easier and instead.
The government of -- is making business harder.
Let's let's just explain for folks -- they're they're 15100.
Franchises that you're in control of -- They do health have a home cared stuff for whatever is air conditioning that sort of stuff.
And a lot of them employ less than fifty employees but where you're telling me is a lot of the new franchisees are people who had her small businesses but had to close up shop.
And are coming to a franchiser because they've they can make it on their own.
-- you know they're not closing their shops actually converting their shops to become a franchisee one of our brands whether mr.
mr.
electric mr.
appliance air served.
Because it's difficult doing business and think about it.
Just keeping up with social media today David -- a lot mean what does that feel what is key PC these guys are plumbers and electricians.
And they're doing work that's important all of us make our homes comfortable.
But life -- like this complicated moment let's go bad relation.
Let's go back specifically did the health care law because it's supposed to only affect.
Are companies that have more than fifty employs a lot of your franchises have less than fifty employees does it still affect them.
-- -- the good news is is that the majority of our franchisees because we're in the service sector don't require fifty employees.
To be able to take great care the customers in our average market place so that's the good news for the broader group that's -- the good news for most of my friends and preached I think.
But it is for us yet they aspire to become larger franchises you know they want to build a -- larger market place.
And unfortunately this this new health care law's going to make a challenging.
Well are their franchises that that perhaps would like to expanded to over fifty -- but don't do so because they're afraid of obamacare.
I would say yes we've got a lot of franchisees and -- on the line right -- that are the larger ones.
Saying you do like to take on an additional territory and our businesses we have seven brands so they can don't a mystery -- franchise and also hiring an international restoration franchise but.
Should they really do that right now to take some past the fifty mark.
What about other regulations it's not just the regulations and new health care law there a lot of other regulations -- -- -- -- sometimes just enforcing.
Much harder than they used in some of the regulation they have how's that affected business.
-- any any regulation that typically is just challenging per businesses.
We have it again enough complexity.
And just running the businesses that we run and we and we -- Helping people have backlight -- that's the business that really just happened used franchising to do it but to people layering on these additional regulation that it just makes it.
Tougher to do business.
What I find is our franchisees are resilient you know we're in the business of looking for ways to get to work through it and.
And control we can't control.
When you're talking about complexity in my mind the first thing it comes to my -- the government our taxes.
We have a tax code now that is so much more complex.
We and we are always talk about simplification last year and and we've got -- exactly the opposite direction put in all of these these deals for special interest and now.
You're not even sure whether what what your exact rate is depending on when you book business so.
How -- you sorting all -- out.
Well -- it's it's a challenge and I think a better franchisees.
Most of them are sole proprietors.
So they're they're taxes are being -- the entity that they don't.
And for every dollar that -- pay an additional tax that's one less dollar they -- get back into growing their businesses and creating jobs.
So where were -- starving the goose.
That -- the golden egg of you know producing more jobs.
Well at least you are growing -- partly as a result lavalas complication people -- to just go into a franchise.
-- -- -- from the Dwyer group good -- -- -- -- please come back this is a get a thank David -- issue.
