State of Franchising Robert Cresanti, CFE President & CEO - PowerPoint PPT Presentation

State of Franchising Robert Cresanti, CFE President & CEO International Franchise Association

International Franchise Association • Founded in 1960, IFA is the world's oldest and largest organization representing franchising worldwide. • IFA’s Mission: to protect, enhance and promote franchising. • IFA members include franchise companies in over 300 different business sectors, individual franchisees, and suppliers that provide products and services to the industry.

The View From Washington, DC Deconstructing the Franchise Administrative State ✓ Joint Employer Administrator’s Interpretation ✓ Overtime Rule ✓ EEO-1 Form ✓ Persuader Rule ✓ NLRB nominees & general counsel ✓ Executive Order on Association Health Care Plans ✓ Passage of HR3441 in the House ✓ FASB relief ✓ Tax Reform

Joint Employer Momentum is Real • Legislative solution the only way to achieve permanent fix across both NLRA & FLSA • Bipartisan bill passed the House – HR3441 Save Local Business Act – 242-181 (8 Ds) • Still challenge in Senate getting Democrats

Positive Joint Employer Bills Across the U.S.

Freshii Letter • Significant Win on Joint Employer – Usually 2-3 Democrats – Letter gained support from New Dems, Blue Dogs and Rep. Bobby Rush (D – IL – 1) – Trust-building and educational exercise – Surprise to opponents – Members value IFA as a flexible partner – Coalition partners see IFA as a leader, results-oriented, creative

Tax Reform: Where are we?

What we’ve done IFA and our members have been working alongside the Administration & Congressional Leaders to ensure tax reform becomes a reality for America’s 733,000 franchise businesses Robert Cresanti, IFA President and CEO, discusses the state of franchising in an exclusive interview Catherine Monson, IFA Board of Directors member and FASTSIGNS CEO on FOX BUSINESS Varney and Co

Tax Conferees Senate: House: • • Orrin Hatch (R-UT) Kevin Brady (R-TX) • • Devin Nunes (R-CA) Mike Enzi (R-WY) • Peter Roskam (R-IL) • Lisa Murkowski (R-AK) • Diane Black (R-TN) • John Cornyn (R-TX) • Kristi Noem (R-SD) • John Thune (R-SD) • Fred Upton (R-MI) • Rob Portman (R-OH) • John Shimkus (R-IL) • Tim Scott (R-SC) • Rob Bishop (R-UT) • Pat Toomey (R-PA) • Don Young (R-AK)

Proactive Initiatives • 18 state joint employer laws; 8 more possible in 2018 • Women Entrepreneurship Initiative • Apprenticeship task force (Steve Greenbaum) • White House Small Business Event Aug. 1 (20 franchisees) • @OurFranchise / Path Forward Coalition • Launch of Labor Compliance Tool with Littler • Research to debunk “Fissured Workplace” theory • Congressional Franchise Caucus (3 events held in 2017)

National News Coverage

Local Op-Eds - Matt Lewis, SportClips Area Developer

Service Union Plans Big Push to Turn Midwest Political Tide https://www.nytimes.com/2017/08/24/business/economy/seiu-labor-midwest-politics.html • “Challenging the Republican ascendance in states where labor once carried enormous sway, a prominent union plans to spend tens of millions of dollars during the 2018 campaign cycle to reverse the trend.” • “The Service Employees International Union, one of the largest and wealthiest unions in the United States with roughly 2 million members, will fund an extensive campaign over the next 14 months to elect politicians with labor- friendly stands on the minimum wage, unions and health care.”

2018/2020 Political Outlook Uncertainty Reigns Supreme! – President Trump cutting deals w/ Democrats – President Trump in open warfare w/ GOP leadership & incumbent GOP Senators up for reelection in 2018 (Flake) – House GOP retirements escalating, especially among moderates – Midterm politics: over the past 21 midterm elections , the President's party has lost an average 30 seats in the House, and an average 4 seats in the Senate; moreover, in only two of those has the President's party gained seats in both houses.

So what can you do? • Visit https://www.franchise.org/join-ifa & Become a Member Today! • As a member, you receive: – Discounts on marketing and lead generation opportunities – Networking opportunities – Education and professional development opportunities – Free subscriptions to IFA’s world -class publications – Opportunities to serve on committees – Access to research and reports on franchise trends – REPRESENTATION AT THE FEDERAL AND STATE LEGISLATIVE LEVELS

Text “FAN” to 52886 • Your action and support will help fix the joint employer liability standard. When you text FAN to 52886, you can easily send your representatives and senators a letter in support of the bill to save your business.

• FranPAC is IFA’s Federal Political Action Committee (PAC) • FranPAC gathers personal contributions from members of IFA to give to federal Congressional candidates who are working to support and protect the franchise business model • FranPAC is crucial to IFA’s advocacy efforts in Washington • This year, FranPAC has given over $325,000 to Congressional candidates who support the franchise business model You can donate to FranPAC today for as little as $365/year---or $1 a day!

Upcoming IFA Events IFA2018 Annual Convention February 10-13, 2018 | Phoenix, AZ www.franchise.org/convention

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