Take Action: Franchisee engagement can change government policy

One thing is certain in the world of political uncertainty: Franchisee engagement is essential to successful policy outcomes. This year has brought one of the most consequential policy battles to date for multi-unit franchisees: fighting to overturn the National Labor Relations Board’s (NLRB) expanded joint-employer standard.

This rule from the NLRB would take away franchisee autonomy, wipe out franchisee equity, and change the franchise business model as we know it. We experienced the consequences of this rule when a similar standard was issued in 2015. That’s why multi-unit franchisees have been outspoken against the rule and critical to bringing it to an end once and for all. Countless members of IFA have advocated against expanded joint employer, leading to bipartisan support for legislation to overturn the rule, which has passed the U.S. House and Senate.

The importance of multi-unit franchisees engaging in advocacy on behalf of franchising is paramount, especially with increased government and media scrutiny over the franchise business model. Multi-unit franchisees are the ultimate validator for responsible franchising because they are already operating units of a brand and decided to put more skin in the game by adding to their portfolio.

“Firsthand experience”

At this year’s IFA Annual Convention 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. They shared why it is a priority for them to take time away from their day-to-day jobs to get involved in government relations. Flynn said, “[Lawmakers] believe more of what you have to say because you’re doing it from firsthand experience. Advocacy is so important for our businesses. We operate in a tangle of regulations and laws that are very hard to navigate. They really affect our outcomes in important ways. Anything we can do to make our lives a little less burdened by the regulations, or even assisted by helpful legislation, has outsized impacts 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 real-life 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 having relationships before you need them, which happens through persistence in advocacy over the years.

Your voice matters

Whether you’re a longtime advocacy pro or don’t know where to start, remember that your voice makes a difference, and IFA is here to support you in that journey. Whether it’s making a connection, facilitating a meeting, or sharing your message, we are working tirelessly here in Washington and around the states to protect this powerful business model, but we can’t do it without you.

Thank you to everyone who has taken the time to make a difference, including the 5,300 individuals who joined the petition to the White House urging them to sign the legislation to overturn joint employer, and for your work to make this business model stronger. The bill would not have made it this far without your support, and these efforts are stopping this policy before it brings any more harm. Together, we can change the narrative around franchising so that lawmakers truly understand how the business model works and see all the good business owners like you do every single day.

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