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The five weeks between the Republican and Democratic conventions could have lasted a lifetime, as a new Democratic nominee emerged in record time. As always, International Franchise Association (IFA) will be neutral in presidential elections and will work with whoever is in the White House to improve the model. We were on-site, just like when we were in Milwaukee for the Republican National Convention. ChicagoEducate candidates and campaign workers about all the positives that franchising brings, especially for minority-owned businesses.
Highlights from Chicago’s legislators and franchise drive #DNC2024IFA is proud to work with bipartisan members on policies that support the franchise business model and America’s nine million workers. pic.twitter.com/vexxskHpuK
— IFA (@Franchising411) August 21, 2024
Like many Americans, the franchise community is eager to hear more about Vice President Harris’ vision and policy priorities. In her acceptance speech, Vice President Harris said: Opportunity AgendaIt’s encouraging to see her era featured in one of her earliest commercials. Working at McDonald’sIn fact, if Harris wins, she and her husband, Doug Emhoff, 1 in 8 Americans
People who have worked at McDonald’s. Here are five concrete ways Vice President Harris can appeal to the franchise community to truly support the franchise business model.
Related: Considering owning a franchise? Get started today and find a personalized listing of franchises that fit your lifestyle, interests, and budget.
Become a franchise champion
First, Vice President Harris is a proponent of franchises and Election Campaign We will be visiting franchises and meeting employees in battleground states and everywhere in between, opening the door for franchising as a component of the opportunity agenda that includes the unique benefits of franchising for all stakeholders involved in the franchise model.
These stakeholders range from the approximately 9 million employees working in America’s 800,000 franchised businesses (who earn higher wages and benefits than non-franchised employees) to the franchise owners themselves, who are more racially and gender diverse than other franchisees. Non-franchise.
Related: The First 100 Days of Onboarding Are Critical: Commonly Overlooked Factors That Can Determine New Employee Success
Waiving the Expanded Joint Employer Rule
Second, Vice President Harris spoke at the Democratic National Convention about working with business and labor. But one of the top priorities for labor is Joint Employer Rules It would effectively destroy the franchise. A Harris Administration that wants to support the creation of small businesses must abandon efforts to implement the expanded joint employer rule.
Bipartisan majority Congress and federal courts have refused to expand the joint employer test to include retention and indirect control. Even the Democratic supermajority in the California Legislature and her home state Governor Gavin Newsom have rejected joint employer liability. This paved the way for negotiating legislation with labor unions that would have allowed franchisees to retain an equity stake in their franchise operations and created predictable increases to the minimum wage.
Related: Franchise attorney and industry expert with 20 years of experience talks about how the election will affect small businesses
Calling for a tax system that is favorable for small and medium-sized enterprises
Third, Vice President Harris should call for tax policies that are favorable to small businesses, taking into account expired and soon-to-expire tax provisions. Tax Cuts and Jobs Act (TCJA), which includes an extension of the Qualified Business Income Deduction (QBID) (also known as the Section 199A deduction) and the reinstatement of the growth-promoting interest deduction that expired at the end of 2022.
199A deduction extension and bipartisan bill passed American Families and Workers Tax Relief Act The bill, which received overwhelming bipartisan support in the House of Representatives this year, would provide significant benefits to franchise owners. It increases the amount of interest owners can deduct from their income taxes, provides one-time special depreciation for the purchase of equipment and short-term capital assets, and contains other business- and worker-friendly provisions.
These measures will give small business entrepreneurs a competitive advantage over larger corporations and demonstrate that Vice President Harris is committed to addressing the needs of the small business community. She can chart a new course and reach out to the business community by setting politics aside and committing to extending the policies they have relied on. Without action, every business owner in the country will wake up on January 1, 2026 and face higher taxes.
Related: Learn the secrets of running 20+ businesses as a side hustle – Finding and nurturing “STIC talent”
Increased SBA loan limits
Fourth, raising the loan limit Small and Medium Enterprise Association “We will strengthen access to the SBA’s 7(a) Working Capital Pilot (WCP) program,” Harris said in her acceptance speech. PledgedIt aims to “provide access to capital to small business owners, entrepreneurs and founders.” Launched earlier this year, the WCP is a line of credit product that features a guaranteed annual fee structure that offers more flexibility than traditional long-term financing to meet specific business needs.
In this high-interest rate environment, access to capital has become increasingly difficult, and the SBA has pitched the concept as a way to break down barriers for people looking to forge their own path to entrepreneurship, with the franchise model expected to continue to play a large role.
Related: Find out which brands have been on the Franchise 500 the longest and are inducted into the new “Hall of Fame”
Outlining the Future of the Federal Trade Commission
Finally, Harris should outline the future vision for the Federal Trade Commission (FTC), including modernizing the Franchise Rule, the federal regulation that governs franchise sales. The Franchise Rule currently under review by the FTC: Updated since 2007 The same year the first iPhone was released.
Research Presentation The Wall Street Journal It takes 20+ years of education to understand the Franchise Disclosure Document (FDD), Federal investigation We find that many prospective franchisees don’t read disclosures at all. This needs to change, especially during the pre-sales process when prospective franchisees are deciding whether to invest significant funds in a franchise.
The Harris administration FTC “It will further the FTC’s true mission: to foster entrepreneurial growth in franchising and protect consumers and future franchisees. The franchise business model fosters workforce development and small business creation in our communities. We look forward to working with all branches of government and political parties toward this important goal.”
Related: Is Franchising Right for You? Ask yourself these nine questions to find out.
Matt Haller is president and CEO of the International Franchise Association (IFA). Greg Flynn is founder, chairman and CEO of The Flynn Group and Flynn Properties and an IFA board member. The Flynn Group is the world’s largest franchise operator with more than 2,700 Applebee’s, Taco Bells, Paneras, Arby’s, Pizza Huts, Wendy’s and Planet Fitness locations in 44 states and three countries, generating sales of more than $4.7 billion and employing more than 75,000 people.
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