5 Ways That Kamala Harris Can Enhance The Franchise Neighborhood, Fixed with Two Industry Leaders
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The 5 weeks between the Republican and Democratic conventions can also hold been a lifetime, as a keep-fresh Democratic worth formed in file sprint. As always, the International Franchise Association (IFA) is just in presidential elections and we are going to work with whoever is in the White House for the betterment of our model. Precise as we hold been in Milwaukee for the RNC, we hold been on the bottom in Chicago, teaching candidates and campaigns referring to the complete apt franchising provides, in particular for minority-owned corporations.
Extra highlights from championing franchising with lawmakers in Chicago on the #DNC2024. IFA is proud to work with contributors across the aisle on insurance policies that make stronger the franchise business model and its 9M workers in the U.S. pic.twitter.com/vexxskHpuK
— IFA (@Franchising411) August 21, 2024
Fancy many Individuals, the franchise neighborhood is in learning extra about Vice President Harris’ imaginative and prescient and coverage priorities, which she characterized in her acceptance speech as an Alternative Agenda. It’s miles encouraging that one in every of her early commercials sides her time working at McDonald’s. In actuality, if elected, Harris, along with her husband Doug Emhoff, will piece a long-established thread with the 1 in 8 Individuals
who hold labored at McDonald’s. To in actuality make stronger the franchise business model, here are 5 concrete ways Vice President Harris can attraction to the franchise neighborhood.
Be a champion for franchising
First, Vice President Harris has to be a champion for franchising and use each and on every day foundation on the campaign accelerate to transfer to franchises and meet their workers in swing states — and in each and each intention in between. Doing so will liberate franchising as a a part of the Alternative Agenda, including the unique advantages of franchising for all stakeholders enthusiastic in the model.
Those stakeholders are wide — from the nearly 9 million workers who work for America’s 800,000 franchise corporations (and compose bigger wages and better advantages than non-franchised workers) to the franchise householders themselves, who’re extra numerous in trot and gender than non-franchises.
Abandon an expanded joint employer rule
2nd, Vice President Harris talked on the DNC about working with business and labor. But, one in every of labor’s prime priorities has been a joint employer rule that will per chance effectively kill franchising. A Harris administration that needs to enhance small business advent must abandon efforts to implement an expanded joint employer rule.
Bipartisan majorities in congress and a federal court docket hold rejected increasing the joint employer test to consist of reserved and oblique adjust. Even Democratic supermajorities in the California legislature, and her home-remark Governor Gavin Newsom, rejected joint employer authorized responsibility. This created a pathway to barter a bill with organized labor that preserved franchisee fairness of their business, and developing predictable increases in the minimum wage.
Demand professional-small business tax insurance policies
Third, Vice President Harris must restful name for professional-small business tax insurance policies, given the expired and expiring provisions of the Tax Cuts & Jobs Act (TCJA). These consist of extending the qualified business income deduction (QBID), in most cases identified as the portion 199A deduction, and restoring educated-boost curiosity deductibility usual that expired on the terminate of 2022.
Extending the 199A deduction, along with passing the bipartisan Tax Reduction for American Households and Workers Act — which garnered overwhelming bipartisan make stronger in the House this year — would greatly income franchise householders. This regulations would expand the amount of curiosity householders can deduct from their income taxes, provide quick-time duration bonus depreciation for the acquisition of equipment and quick-lived capital sources and consist of alternative professional-business and professional-employee provisions.
These actions would offer small business entrepreneurs with a aggressive edge over wide corporations and report that Vice President Harris is committed to addressing the desires of the small business neighborhood. She will chart a brand fresh route and lengthen an open hand to the business neighborhood by putting the politics aside and decide to extending a coverage they’ve reach to rely on. With out circulation, each and every business owner in nation wakes up on January 1, 2026, facing a tax expand.
Amplify lending limits on the SBA
Fourth, expand lending limits on the Minute Industry Association (SBA) and enhance receive admission to to the 7(a) Working Capital Pilot (WCP) program. Precise through her acceptance speech, Harris pledged to, “provide receive admission to to capital for small-business householders and entrepreneurs and founders.” Launched earlier this year, WCP is a line of credit product that sides an annual warranty fee constructing that works to provide bigger flexibility than a aged time duration mortgage to meet explicit business needs.
Accessing capital is an increasing form of sturdy in the kind of high-curiosity rate ambiance. The SBA pitched the thought that as a mode of breaking down obstacles searching for to birth their very bear pathway to entrepreneurship, the keep aside the franchise model is poised to proceed taking half in a critical role.
Outline a future for the Federal Switch Fee
At final, Harris must restful elaborate a future for the Federal Switch Fee (FTC) that incorporates a modernization of the Franchise Rule, a federal regulation fully enforced by the FTC that governs the sale of a franchise. Currently beneath overview by the FTC, the Franchise Rule hasn’t been up up to now since 2007 — the a connected year the first iPhone modified into once offered.
Be taught published in the Wall Aspect street Journal showed it took extra than 20 years of education to fancy a Franchise Disclosure Doc (FDD), and a federal investigation realized many doubtless franchisees did not read the disclosures in any appreciate. This needs to change, in particular right throughout the pre-sale process when a doubtless franchisee is deciding whether or no longer to make investments critical financial sources in a franchise.
A Harris administration shall be wise to course-appropriate the FTC to foster entrepreneurial pattern in franchising and double-down on the honest mission of the FTC — to provide protection to consumers and doubtless franchisees. The franchise business model encourages physique of workers pattern and small business formulation in local communities, we detect ahead to working with any administration and any political birthday party against that crucial aim.
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Matt Haller is the President and CEO of the International Franchise Association (IFA). Greg Flynn is the Founder, Chairman, and CEO of Flynn Community and Flynn Properties, and an IFA Board Member. With 2,700+ Applebee’s, Taco Bells, Paneras, Arby’s, Pizza Huts, Wendy’s and Planet Well being fashions generating $4.7+ billion in sales and employing 75,000+ folks in 44 states and 3 international locations, Flynn Community is the finest franchise operator on this planet.
