IFA Franchise Association : January 21 - What is the Franchise Industry Saying Following the State of the Union Address?

FOR IMMEDIATE RELEASE

Contact:
Matthew Haller, 202-460-8356
Jenna Weisbord, 202-662-0766
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WHAT IS THE FRANCHISE INDUSTRY SAYING FOLLOWING THE STATE OF THE UNION ADDRESS?

WASHINGTON, Jan. 21, 2015 - Local franchise business owners around the country watched the State of the Union last night in hopes that President Obama would outline ways Washington can help small businesses grow and create jobs. Franchised businesses in particular have been impacted by constant and incremental meddling from all levels of government. Ranging from unfair and discriminatory minimum wage hikes approved at the local level to the Obamacare mandate for a 30 hour work week to a new 'joint employer' mandate from the Presidential-appointed National Labor Relations Board (NLRB), decisions from activist governments have created cost increases that make it more difficult for franchised businesses to expand and create new jobs.

The International Franchise Association (IFA) sought the perspective of key leaders within the franchising community about what they feel Congress and the President should do to support the business community.

Clint Ehlers, Pennsylvania-based FAST SIGNS Franchisee on NLRB Joint Employer Recommendation

'The recommendation from the NLRB's General Counsel that McDonald's be considered a joint employer with several of its franchisees actually poses a threat to my business. If it is upheld and applied as a new standard, this decision could reduce my autonomy as a franchise owner, curb my appetite for expansion and possibly force me to reduce the number of people I employ. I take great pride in my independent franchise small business, and I hope to succeed for my family, my employees and my community. I cannot imagine what I would do if I were stripped of my independence because a different business owner, hundreds of miles away, is facing a lawsuit that has nothing to do with me. Hopefully Congress will force the NLRB to reject this flawed recommendation.'

Herv Breault, Pennsylvania-based Philly Pretzel Factor Franchisee on Proposed Minimum Wage Increases

'As a retired veteran, franchising is practically ready made for military folk and it is imperative to help integrate our returning servicemen and women back into the civilian economy. Congress should pass legislation that would give incentives for companies that hire military veterans, allowing veterans to pursue their leadership, teamwork and organizational experience.'

Nancy Bigley, CEO, Bottle & Bottega, California on Federal Proposals to Increase Minimum Wage

'I have deep concerns about the proposed wage hikes being examined at the federal level. These dramatic wage increases are going to have a negative impact on small businesses, which already operate under thin margins. The Congressional Budget Office recently stated that nearly 1 million jobs could be lost if these wages are imposed. The bottom line is that I don't think increasing costs again for small business owners will help them drive economic recovery. '

Brooke Wilson, Multi-Unit Franchisee, TWO MEN AND A TRUCK® Durham, NC on the 30 Hour Work Week Requirement in the Affordable Care Act

'The Affordable Care Act's provision requiring employers to provide coverage to full-time employees, and defining full-time as 30 hours, will cause many employers to alter their employees' hours. The 30-hour definition is a major change that could have far reaching consequences we have not yet begun to see and decisions like this will lead to an increase in part-time work throughout the American economy.'

Saunda Kitchen, Franchisee Mr. Rooter Plumbing, Sonoma County, CA on the need for comprehensive Tax Reform

'America's tax-code is not working for the economy and small business owners like me are getting lost in the complex web. Comprehensive tax reform, aimed at creating a fairer and simpler tax code for America's franchise small business owners, is the best way to stay competitive and create more jobs.'

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About the International Franchise Association
The International Franchise Association is the world's oldest and largest organization representing franchising worldwide. Celebrating over 55 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 770,000 franchise establishments, which support nearly 18 million direct and indirect jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.

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