Franchisee engagement can change government policy

In a world of political uncertainty, one thing is certain: franchisee engagement is critical to successful policy outcomes. This year has brought one of the most consequential political battles ever for multi-location franchisees: the fight to repeal the National Labor Relations Board’s (NLRB) expanded joint employer standard.

This NLRB rule would strip franchisees of their autonomy, wipe out their equity, and change the franchise business model as we know it. We felt the impact of this rule when a similar standard was enacted in 2015. That’s why multi-location franchisees have spoken out strongly against this rule and pushed for its permanent elimination. Countless IFA members have spoken out against the expansion of joint employers, resulting in bipartisan support for a repeal bill that has now passed the U.S. House and Senate.

It is of utmost importance that multi-unit franchisees are committed to franchising, especially with the increasing government and media attention being given to the franchise business model. Multi-unit franchisees are the ultimate touchstone of responsible franchising, as they already operate units of one brand and have chosen to bring even more into the game by expanding their portfolio.

“First-hand experience”

At this year’s IFA Annual Meeting in Phoenix, attendees heard from multi-unit giants David Humphrey of Ignite Fitness Holdings, Greg Flynn of Flynn Restaurant Group and Jesse Keyser of Keyser Enterprises, who shared why it’s so important for them to take time out of their day-to-day business to get involved in government relations. Flynn said, “(Legislators) believe more of what you have to say because you’re doing it first-hand. Advocacy is so important to our businesses. We operate in a maze of regulations and laws that are difficult to navigate. They affect our bottom lines in a significant way. Anything we can do to make our lives a little less burdened by regulations or even be supported by helpful legislation has a disproportionate impact on our businesses.”

We continued the conversation on a panel at the recent Multi-Unit Franchising Conference with multi-brand franchisees Rob Branca and Nate Garn, who detailed the practical implications of the California FAST Act and the bottom-line impact of tax law changes, such as the need to reinstate the interest deduction that expired in 2022. We also talked about the importance of building relationships before you need them, which is accomplished through persistent engagement over the years.

Your voice counts

Whether you’re a long-time advocate or don’t know where to start, remember that your voice makes a difference, and IFA is here to support you along the way. Whether it’s making a connection, organizing a meeting, or spreading your message, we’re working tirelessly here in Washington and across the states to protect this powerful business model, but we can’t do it without you.

Thank you to everyone who took the time to make a difference, including the 5,300 people who joined the petition to the White House urging them to sign the bill to repeal the Joint Employer, and for your work to strengthen this business model. The bill would not have gotten this far without your support, and this effort stops this policy before it does more harm. Together, we can change the narrative around franchising so lawmakers truly understand how the business model works and see all the good business owners like you who are good business owners every day.

Matthew Haller is President and CEO of the International Franchise Association.