Small Businesses, Mega-Brands, and Hope.

15 Sep

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Defending Small Businesses on Capitol Hill

This month will end with members of the International Franchise Association once again gathering in Washington DC and meeting with legislators. We will discuss several issues affecting all franchisors, franchisees, and suppliers as well as lobby for less regulatory impediments as usual.

The key issue this year will be the National Labor Relations Board’s decision to completely ignore the basis of the franchise business model. The NLRB recently ruled that some businesses are now responsible for the employment actions of other businesses.

Unless you’re blissfully ignorant or work for a service union, you will agree that employees of a locally owned business are NOT actually employed by a corporation that had nothing to do with hiring those employees. (Without setting foot on Capitol Hill, I can tell you right now how the two senators from my home state of Illinois will respond.)

If the work of the IFA in past years is any indication, the IFA members and the IFA team will do a fantastic job of communicating the needs for running a business, growing that business, creating jobs, and ultimately growing the economy.

Mega-Brands and “Hope”

But how much of this effort pays off for those who do most of the heavy lifting – small to medium sized franchise systems – versus the huge brands? Will McDonalds and the other mega-sized franchises join this fight? If we’re successful, these large brands have the most to gain. Will they support this activity and join us on Capitol Hill? I hope so.

A great deal of pro-business promotion, communication, and lobbying is done by franchise industry suppliers. Are the mega-brands supporting these suppliers? I hope so.

When they select a PR firm, software vendor, ad agency, insurance provider, or other business service, do they ask if that supplier supports franchising and the IFA? I hope so.

Continuing to educate legislators and voters about how businesses operate is important for the IFA this year. Perhaps in 2016, we can also educate some large brands about how businesses operate.

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