Julie Su, President Biden’s nominee to lead the U.S. Department of Labor (DOL), has shown herself to be an alarming threat to the franchising sector in Arizona.

Total put at risk by Julie Su in Arizona:

  • 18,154 franchise establishments
  • 195,924 franchise employees
  • $19.387 billion in economic output from franchises

Su, who was previously the head of California’s Labor and Workforce Development Agency, aggressively supported A.B. 257, the “FAST Recovery Act.” The bill would grant California’s government vast new power to regulate wages and company policies at franchised restaurants. Californian voters made clear their opposition to the radical overhaul last year, with over one million voters signing a petition proposing a ballot referendum which could overturn the new law.

Su has also been a participant in the Biden administration’s broader attacks on franchising. Shortly after Su became U.S. Deputy Secretary of Labor, DOL announced a revocation of Trump-era protections under the joint employer standard, further threatening the viability of the franchise model.

In total, Julie Su threatens 18,154 establishments195,924 employees; and $19.387 billion in financial output in Arizona’s franchising sector.*

Last week, nine small business associations in Arizona also sent a letter to Senators Kyrsten Sinema (I-Ariz.) and Mark Kelly (D-Ariz.), asking them to oppose the nomination of Julie Su.

*Data obtained from the FRANdata 2023 Franchising Economic Outlook.