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The Republican National Convention, which began just hours after the assassination of a presidential candidate, took on greater significance this yr. In my role as President and CEO of International Franchise Association (IFA)I traveled to Milwaukee for a political discussion entitled “Franchising, the American Dream” with US Representative Kevin Hern (R-OK), co-chair of the Congressional Franchise Caucus, McDonald’s franchisee Jimmy Williams and hotelier Jyoti Sarolia.
To be clear, IFA is non-partisan and doesn’t take sides in presidential campaigns. We will probably be in Chicago in August for the Democratic National Convention, and we work with anyone from either party who supports our priorities and fights for our franchised small business owners. That’s also why we partnered with POLITICO and CNN with Milwaukee-based Batteries+. We did a brand activation on the POLITICO/CNN Grill, where we handed out wireless battery chargers to over a thousand attendees over 4 days and taught convention-goers in regards to the economic advantages of franchising, with a QR code that results in IFA’s “Open for Opportunity” campaign.
Related: Check out the 2024 Franchise 500 rankings
Party conventions are all the time exciting, and this yr was no different, especially after COVID-19 limited in-person celebrations in 2020. The enthusiasm and energy were palpable. In my conversations with various stakeholders from all walks of life, certain commonalities emerged. Here are 4 of them.
1. Unions and franchising are usually not incompatible
The fiery speech by Sean O’Brien, president of the International Brotherhood of Teamsters, caught people’s attention. It was the primary time within the 121-year history of the RNC that a Teamster had given a speech. Wall Street Journal The headline read: “Trump Courts Union Votes.” Republicans are usually not used to having speakers at their conventions railing against “economic terrorism.” But as O’Brien identified, the Teamsters have supported Republican candidates before, including Presidents Richard Nixon, Ronald Reagan and George HW Bush.
For the franchise community, O’Brien’s presence was a reminder that we now have a compelling story to inform and that we’d like to inform it.
First, our model provides nearly 9 million direct jobs, and never a single certainly one of them is outsourced overseas. Second, franchise jobs pay as much as 3.4 percent more and offer more paid vacation and other advantages than non-franchise jobs, in keeping with data from Oxford Economics. Third, franchises ARE small businesses, and that is the advantage of our business model.
Related: 7 ways the expanded joint employer rule would hurt franchises – and your wallet
While we may disagree with the Teamsters or other unions on many points, we agree on one thing: policymakers should give attention to creating good jobs here in America, and that is exactly what the franchise community is doing. Even when our brands open latest franchises abroad, we bring a refund to the U.S. via the royalties paid to operate a U.S. brand abroad, making a net trade profit for the U.S. economy.
We must thrust back against the notion that the franchise model and unions are incompatible. That is fake. We can have each, and we now have each. It is true that unions’ core policy goals, the PRO Act and an expanded definition of joint employer, and franchising cannot coexist, but unions are usually not inherently adversaries. We oppose the concept that their past policy priorities would bring down franchising.
2. Franchising results in a reorganization of party boundaries
Second, traditional political and party lines are shifting, providing one other golden opportunity to expand the franchise tent. Public polls have shown that former President Donald Trump is as much as 30 percent of black voters – almost 3 times as high because the 12 percent he earned in 2020.
Here, too, franchising plays a very important role. Women, veterans and minorities usually tend to own franchised businesses. In fact, greater than 1 / 4 (26 percent) of franchises are owned by people of color, in comparison with 17 percent of non-franchise businesses.
As Clement Troutman, an IFA member, US Navy veteran, writer and franchisee of the Tropical Smoothie Cafe in Maryland, wrote in a column for the Washington Times Juneteenth noted, “The past few years have been challenging for Black entrepreneurs. From difficulties accessing capital to the disproportionate impact of the pandemic, Black small business owners face significant obstacles.”
Clement noted, “Franchising can help, but only if elected officials do their part to create the right business environment.” These are clever words and lessons that every one candidates should take to heart as they seek to expand their political support base.
3. JD Vance has been a champion of franchising previously
Senator JD Vance got here under intense scrutiny after being named the vice presidential nominee, and nearly every conversation I had with members of Congress and others in Milwaukee revolved across the query of what to make of Senator Vance’s nomination. In the event of a Trump victory, many see him because the natural standard-bearer for the Republicans in 2028. During his two years within the Senate, Vance has made waves by deviating from traditional Republican orthodoxy, including marching on union picket lines and The highly acclaimed Chair of the Federal Trade Commission (FTC), Lina Khan as “one of the few people in the Biden administration who I think is doing a pretty good job.” Yet when it got here to franchising issues, particularly joint employers, Senator Vance was on the side of franchising. When the stakes were highest in repealing the joint employer rule this spring, Vance was on our side, and that is telling.
4. The next president could have a big effect on franchising
Members of the franchise community – like all voters – judge their presidential election through the prism of past politics. We have an idea of what a second This is what the Trump-Biden administration might appear like, judging by their time in office to this point. The IFA is actually far more focused on economic and regulatory vision than political ideology. What is the plan for job creation?
Related: Decoding the Massive Impact of the NLRB’s Joint Employer Rule
For example, the person taxation provisions within the Tax Cuts and Jobs Act (TCJA) expire next yr. The law significantly restructured quite a few points of the federal tax system for small businesses, including cuts in individual and company tax rates, a brand new 20% deduction for income from pass-through businesses, 100% bonus depreciation for capital investments, and a brand new limitation on the deductibility of business interest. The Republican platform specifically calls for tax cuts, and plenty of members of the Ways and Means Committee that may draft the subsequent tax bill, including Chairman Jason Smith of Missouri, Vern Buchanan of Florida, and Lloyd Smucker of Pennsylvania, have all stressed the importance of ensuring that pass-through businesses, like most franchises, are treated fairly in the subsequent round of tax reform.
Beyond tax issues, the subsequent president can even select the chairman of the FTC himself, who could have the facility to update franchise rules – something that hasn’t happened since 2007, the yr the primary iPhone was introduced. He can even make appointments to the NLRB, including the overall counsel, arguably probably the most powerful position in that agency.
There is loads at stake for franchisors and franchisees. We don’t vote as a monolith or strictly along party lines. But one thing is obvious: the list of issues facing franchising is long and it’s more essential than ever to have a seat on the table. Thanks to the support of so many IFA members and what our brands, franchisees and suppliers do each day, I’m confident that whatever November brings, franchising will proceed to thrive and the IFA will probably be on the forefront of fighting for franchising’s interests.
