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The Republican National Convention became even more important this year, hours after the presidential candidate was assassinated. As President and CEO International Franchise Association (IFA)I traveled to Milwaukee for a policy roundtable titled “Franchising, the American Dream,” with U.S. Rep. Kevin Hearn (Okla.), co-chair of the Congressional Franchise Caucus ), McDonald’s franchisee Jimmy Williams and hotelier Jyoti Saroliya.
Matt Haller and Jyoti Sarollia Photo credit: Matt Haller
To be clear, IFA is nonpartisan and does not take sides in the presidential race. We will be in Chicago in August for the Democratic National Convention, and we will work with anyone from any political party who supports our priorities and fights for our interests. franchise Small business owner. That’s why we’re partnering with Milwaukee-based POLITICO and CNN battery plus. We hosted a brand activation event at POLITICO/CNN Grill where, over four days, we gave away wireless battery chargers to over a thousand attendees via a QR code associated with the conference. the economic benefits of franchising. IFA’s Open Opportunities Event.
related: Check 2024 Franchise 500 Ranking
Political conventions are always exciting, and this year is no exception, especially after COVID-19 limited in-person celebrations in 2020. In my conversations with stakeholders from all walks of life, certain commonalities emerged. Here are four of them.
1. Unions and franchising are not incompatible
Sean O’Brien, president of the International Brotherhood of Teamsters, got people’s attention with his fiery speech. This is the first time in the RNC’s 121-year history that a truck driver has addressed the RNC. this wall street journal The title is “Trump’s fight for federal votes.” Republicans are not used to convention speakers criticizing “economic terrorism.” But as O’Brien points out, Teamsters have supported Republican candidates before, including Presidents Richard Nixon, Ronald Reagan and George H.W. Bush.
For the franchise community, O’Brien’s presence is a reminder that we have a compelling story to tell, and we need to tell it.
First of all, our model directly provides nearly 9 million jobs, and none of them are outsourced overseas. Second, according to Oxford Economics, franchise jobs pay 3.4% more than non-franchise jobs and offer higher paid time off and other benefits. Third, franchises are small businesses, and that’s the benefit of our business model.
related: 7 ways expanding joint employer rules could hurt franchises and your wallet
While we don’t agree with the Teamsters or other unions on many things, one thing we do agree on is that policymakers should focus on creating good jobs in America, and that’s exactly what the franchise community is doing things. Even as our brands open new franchises overseas, we bring funds back to the United States through the royalties we pay to operate our U.S. brands overseas, creating a net trade benefit to the U.S. economy.
We must counter the idea that the franchise model and unions are incompatible. This is false. We can and do have both. Indeed, the union’s top policy agenda is professional act The expanded definition of joint employer and franchising cannot coexist, but unions are not natural adversaries. The history of their policy priorities leads to a franchise that we oppose.
2. Franchise is redrawing party lines
Second, traditional political and party lines are being realigned, creating another golden opportunity for franchise expansion. For example, polls show that former President Trump’s approval rating is as high as 30% Share of the black vote – almost three times the black vote 12% He earned it in 2020.
Here again, franchising plays an important role. Franchising has higher business ownership among women, veterans and minorities. In fact, more than a quarter (26%) of franchises are owned by people of color, compared to 17% of non-franchise businesses.
Paul Calkins (IFA), House Speaker Mike Johnson and Matt Haller (IFA) Photo credit: Matt Haller
As IFA member, U.S. Navy veteran, author, and Maryland Tropical Smoothie Café franchisee Clement Troutman explains in “ washington times Observes Juneteenth, “The past few years have been challenging for Black entrepreneurs. From challenges accessing capital to the disproportionate impact of the pandemic, Black small business owners face significant obstacles.”
Clement noted, “Franchises can help, but only if elected leaders play their part in creating the right business environment.” These are wise words and lessons for all candidates if they want to expand their base of supporters The political basis should be kept in mind.
3. JD Vance has supported franchising in the past
Senator J.D. Vance received a lot of attention after he was selected as the vice presidential candidate, and nearly every conversation I had with members of Congress and others in Milwaukee centered on what to think about Senator Vance’s selection. If Trump wins, many see him as the natural standard-bearer for the Republican Party in 2028. For example, he marched on a union picket line, Federal Trade Commission (FTC) Chairman Lina Khan receives widespread praise “I think one of the few in the Biden administration is doing a good job.” However, when it comes to franchise issues, particularly joint employer issues, Senator Vance is on the side of the franchises. It is telling that Vance stood with us during the repeal of the joint employer rule this spring when the stakes were highest.
4. The next president will have a huge impact on the franchise
Like all voters, members of the franchise community are evaluating their presidential choices through the prism of past policies. we have a feeling What the Trump and Biden administrations might look like by taking stock of their previous time in office. Of course, the IFA is more concerned with economic and regulatory vision than political ideology. What is the plan to create jobs?
related: Interpreting the huge impact of the NLRB joint employer rule
For example, the personal income tax provisions in the Personal Income Tax Law Tax Cuts and Jobs Act (TCJA) It’s due next year. The law makes significant changes to many aspects of the federal tax system for small businesses, including lower personal and corporate tax rates, a new 20% deduction for pass-through business income, 100% dividend depreciation on capital investments, and new limits on corporate income taxes. deduction. The Republican platform explicitly calls for tax cuts, as emphasized by many Ways and Means Committee members who will draft the next tax law, including Chairman Jason Smith of Missouri, Vern Buchanan of Florida and Lloyd Smucker of Pennsylvania. the importance of ensuring passage.
In addition to tax issues, the next president will choose his own FTC chairman, who can update franchise rules, something that hasn’t happened since 2007 (the same year the first iPhone was launched), and will appoint the NLRB Members, including the general counsel, hold arguably the most powerful positions in the agency.
The stakes are high for both franchisors and franchisees. We do not vote as a group or strictly along party lines. But one thing is clear, the list of issues facing the franchise is long and the importance of having a seat at the table is more important than ever. Thanks to the support of so many IFA members and what our brands, franchisees and suppliers do every day, I am confident that no matter what November brings, franchising will continue to thrive and IFA will be at the forefront of advocating for the best in franchising Struggle for interests.
