Four Takeaways for the Franchise Industry From My Time at the Republican National Convention

Kicking disconnected hours aft an assassination effort connected a statesmanlike candidate, nan Republican National Convention took connected heightened value this year. In my domiciled arsenic President and CEO of nan International Franchise Association (IFA), I traveled to Milwaukee for a argumentation roundtable entitled "Franchising, nan American Dream," pinch U.S. Representative Kevin Hern (R-OK), who is nan co-chair of nan legislature franchise caucus, McDonald's franchisee Jimmy Williams, and hotelier Jyoti Sarolia.

Matt Haller and Jyoti Sarolia Credit: Matt Haller

To beryllium clear, IFA is non-partisan and does not return sides successful statesmanlike campaigns. We will beryllium successful Chicago for nan Democratic National Convention successful August, and we activity pinch anyone from immoderate statement who champions our priorities and fights for our franchise mini business owners. That's besides why we collaborated pinch POLITICO and CNN pinch Milwaukee-based Batteries+. We created a marque activation astatine nan POLITICO/CNN Grill, wherever complete 4 days we gave distant wireless artillery chargers to complete a 1000 attendees, communicating nan economical benefits of franchising to convention-goers, pinch a QR-code that linked to IFA's Open for Opportunity campaign.

Related: Check retired nan 2024 Franchise 500 Ranking

Political conventions are ever exciting, and this twelvemonth was nary different, particularly aft COVID-19 curtailed nan in-person festivities successful 2020. The buzz and power were palpable. In my conversations pinch various stakeholders from each walks of life, definite commonalities emerged. Here are 4 of them.

1. Unions and franchising are not incompatible

The fiery reside from Sean O'Brien, president of nan International Brotherhood of Teamsters, sewage people's attention. It marked nan first clip a teamster addressed nan RNC successful its 121-year history. The Wall Street Journal headline read, "Trump Courts nan Union Vote." The GOP is not utilized to speakers astatine their normal railing astir "economic terrorism." But arsenic O'Brien pointed out, nan Teamsters person supported Republican candidates before, including Presidents Richard Nixon, Ronald Reagan and George H.W. Bush.

For nan franchise community, O'Brien's beingness served arsenic a reminder that we person a compelling communicative to show and we request to show it.

First of all, our exemplary provides astir 9 cardinal nonstop jobs, and not a azygous 1 is being outsourced overseas. Second, jobs successful franchising salary up to 3.4 percent higher wages and supply higher rates of paid time off and different benefits than those astatine non-franchises, according to information from Oxford Economics. Third, franchises ARE mini businesses, and that is nan use of our business model.

Related: 7 Ways The Expanded Joint Employer Rule Would Hurt Franchises — And Your Wallet

While we are not going to work together pinch nan Teamsters aliases different unions connected much, 1 point we do work together connected is that policymakers should beryllium focused connected creating bully jobs correct present successful America, and that's what nan franchising organization is doing. Even erstwhile our brands unfastened caller franchises overseas, we are bringing money backmost ashore to nan U.S. via nan royalty watercourse paid to run a U.S. marque abroad, creating a net-trade use to nan U.S. economy.

We must push backmost connected nan thought that nan franchise exemplary and unions are incompatible. It's false. We tin and do person both. It is existent that nan union's apical argumentation agenda, nan PRO Act and an expanded meaning of associated employer, and franchising cannot co-exist, but unions are not inherently an opponent. It's their history of argumentation priorities that would bring down franchising that we oppose.

2. Franchising is re-aligning statement lines

Second, nan accepted governmental and statement lines are re-aligning, creating different aureate opportunity to grow nan franchise tent. For example, nationalist polls person shown erstwhile President Donald Trump receiving arsenic precocious arsenic 30 percent of nan Black ballot — astir 3 times higher than nan 12 percent he earned successful 2020.

Here again, franchising has an important domiciled to play. Franchising has higher rates of business ownership among women, veterans and minorities. In fact, much than one-quarter (26 percent) of franchises are owned by group of color, compared to 17 percent of non-franchised businesses.

Paul Calkins (IFA), House Speaker Mike Johnson and Matt Haller (IFA) Credit: Matt Haller

As Clement Troutman, an IFA member, U.S. Navy veteran, author, and Maryland-based Tropical Smoothie Cafe franchisee, wrote successful a file for nan Washington Times watching Juneteenth, "the past fewer years person been challenging for Black entrepreneurs. From challenges accessing superior to a disproportionate effect stemming from nan pandemic, Black mini business owners look awesome obstacles."

Clement noted, "Franchising tin help, but only if elected leaders do their portion successful creating nan correct business environment." These are wise words and lessons that each candidates should return to bosom if they want to grow their governmental guidelines of supporters.

3. J.D. Vance has sided pinch franchising successful nan past

There was a batch of scrutiny connected Senator J.D. Vance aft his action arsenic nan vice-presidential nominee, and astir each speech I had pinch members of Congress and others successful Milwaukee centered astir what to make of Senator Vance's selection. In nan arena of a Trump victory, galore position him arsenic nan earthy GOP standard-bearer successful 2028. Throughout his 2 years successful nan Senate, Vance has raised eyebrows by deviating from accepted Republican orthodoxy. For example, he has marched connected national picket lines and famously praised Federal Trade Commission (FTC) Chair Lina Khan arsenic "one of nan fewer group successful nan Biden management who I deliberation is doing a beautiful bully job." Yet erstwhile it came to franchise issues, peculiarly associated employer, Senator Vance sided pinch franchising. When nan stakes were nan highest during this spring's repeal of nan associated employer rule, Vance stood pinch us, and that is telling.

4. The adjacent president will person a immense effect connected franchising

Members of nan franchise organization — for illustration each voters — are assessing their statesmanlike choices done nan prism of past policies. We person a consciousness of what a second Trump and Biden management could look for illustration by evaluating their erstwhile clip successful office. Certainly, IFA is focused overmuch much connected economical and regulatory visions than we do connected governmental ideology. What is nan scheme for occupation creators?

Related: Decoding nan Massive Impact of nan NLRB's Joint Employer Rule

For example, nan individual taxation provisions successful nan Tax Cuts and Jobs Act (TCJA) are group to expire adjacent year. The rule importantly restructured galore aspects of nan national taxation strategy for mini businesses, including reductions successful individual and firm taxation rates, a caller 20% conclusion for income from pass-through businesses, 100% prize depreciation for superior investments, and a caller limitation connected nan deductibility of business interest. The GOP level expressly calls for taxation cuts and galore Ways and Means Committee members who will constitute nan adjacent taxation law, including Chairman Jason Smith of Missouri, Vern Buchanan of Florida, and Lloyd Smucker of Pennsylvania, person each highlighted nan value of ensuring pass-through businesses for illustration astir franchises are treated reasonably successful nan adjacent information of taxation reform.

Beyond taxation issues, nan adjacent president will take their ain FTC chair, who tin successful move update nan Franchise Rule, thing that hasn't happened since 2007 — nan aforesaid twelvemonth nan first iPhone was introduced — and will make appointments to nan NLRB, including nan wide counsel, who is arguably nan astir powerful position astatine that agency.

The stakes are precocious for franchisors and franchisees alike. We do not ballot arsenic a monolith aliases on strict statement lines. But 1 point is clear, nan database of issues facing franchising is long, and nan value of having a spot astatine nan array is much important than ever. Thanks to nan support of truthful galore IFA members, and what our brands, franchisees and suppliers do each day, I'm assured that immoderate November brings, franchising will proceed to thrive and IFA will beryllium astatine nan forefront fighting for nan champion liking of franchising.