Challenging Political Environment, Advocacy Initiative Focus of Leadership Gathering
With its new public awareness campaign “Franchising: Building local businesses, one opportunity at a time” gaining momentum, the International Franchise Association is preparing to intensify its government relations initiative by launching a business-format model known as “Franchise Congress,” IFA Chairman Steve Greenbaum, CFE, told franchise leaders gathered in Colorado Springs earlier this month for the organization’s Summer Board of Directors meeting.

Franchise Congress will, like franchised businesses, utilize a single system operated by local franchise leaders with a local focus on results that delivers a national impact. “Ultimately, the Franchise Congress will engage more franchise leaders in government and public affairs, educate more legislators, energize IFA’s membership and programs and enhance the credibility and visibility of the association,” David French, vice president of government relations told the gathering. An implementation schedule is in preparation.

French provided an update on the challenging political environment facing the industry in 2009 and beyond, noting that trial lawyers and labor unions are expected to consolidate power and attempt to shape the incoming presidential administration. “Franchising’s best option is to forge individual coalitions on individual issues,” he urged.

Interest in grassroots political activism soared during the event, resulting in another fund-raising record for FranPAC, which topped the $50,000 donations mark through the popular wine auction and raffle led by IFA Past Chairman Lawrence “Doc” Cohen, CFE.
 
IFA President and CEO Matthew Shay directed the board’s attention to updates made in the association’s Long-Range Strategic Plan including strategic priorities that will serve as the basis for the new 2005-2010 plan and implemented with five-year action plans, annual operations plans and budgets.

Attendees were also updated on an integrated marketing campaign that is designed to unify the association’s brand and enhance the image of franchising in the media and other centers of influence by delivering consistent and focused messages about the positive impact of franchising. The project is being directed by IFA Vice President of Communications and Marketing Alisa Harrison.

IFA Educational Foundation Chairman Ken Walker, CFE, and Research Committee Chairman Michael Isakson shared progress reports on key research efforts including – preliminary work with the Census Bureau on the Economic Impact of Franchised Businesses, Volume 3, an annual Franchising Industry Economic Forecast to be published this fall, and plans for a best practices/benchmarking study. A comprehensive IFA Member Satisfaction Survey is being conducted this summer, in cooperation with IFA Supplier Forum member, Services Management Group.

Keynote speakers included Marguerite W. Kondracke, president and CEO of America’s Promise Alliance, an organization created to mobilize American sectors and communities for the well-being of young people; and Eric Chester, founder and president of Generation Why Inc., who offered information about how to recruit and manage 16-to-24 year olds in the workplace.

Business, Disability Rights Advocates Reach Compromise
Last year, U.S. House Majority Leader Steny Hoyer (D-Md.) and Rep. James Sensenbrenner (R-Wisc.) introduced the ADA Restoration Act, which currently has more than 240 bipartisan cosponsors and strives to protect the rights of those who are disabled. Unfortunately, the measures would drastically change the definition of “disability” so that virtually anyone in less than perfect health could be considered disabled.

In February, business community members began meeting with members of the disability rights community to seek common ground. The negotiated new language would uphold the definition of “disability” and overturn recent Supreme Court cases that have prevented some who are disabled from discrimination protections Congress intended when it passed the law in 1990. The new language will define the term “substantially limits a major life activity” to mean “materially restricts” and includes a list of major life activities.

The proposal makes clear that Congress intended coverage to be broad and cover anyone who faces discrimination because of a disability. It will clarify the current requirement that an impairment substantially limits a major life activity in order to be considered a disability. The new legislation will prohibit consideration of mitigating measures in the determination of whether an individual has a disability, with the exception of ordinary eyeglasses and contact lenses. It also includes language that affords broad coverage for individuals “regarded as” having a disability; however, accommodations need not be made to someone who is disabled solely because he or she is “regarded as” having a disability.

The compromise strikes a balance to protect disabled individuals from workplace discrimination and provide employers clear rules. Both groups seek to enact the legislation before year’s end. A large group of disability advocates and a growing number of employer associations and companies will support the new legislation and oppose amendments or changes not agreed to by the original negotiators.

IFA will support the legislation and work with negotiators to ensure no changes are made that upset the compromise. For information, contact IFA Director of Government Relations Jason Straczewski at jstraczewski@franchise.org or 202-662-0797.

Rhode Island Lawmakers Consider Relief for Franchising
After months of negotiations, the Rhode Island Senate began debate to ease harmful effects of the 2007 Fair Dealership Act. On June 6, an amended Senate Bill by Sen. Daniel Connors (D) passed unanimously and is on its way to the House Corporations Committee. The legislature is scheduled to adjourn for the year by the end of June.

The bill makes a number of changes including that all references to “substantial change in competitive circumstances” are removed as is language referencing the “superior economic power and superior bargaining power in negotiations.” Good cause is defined as “failure by the dealer to comply with the reasonable requirements imposed by the grantor or any of the reasons listed in subdivisions 6-50-4(a)(1) through (a)(6).”

The following reasons justify immediate termination, cancellation or non-renewal upon written notice: voluntarily abandoning the dealership relationship; conviction of a felony offense related to the business conducted pursuant to the dealership; engaging in any substantial act which tends to materially impair the goodwill of the grantor’s trade name, trademark, service mark, logotype or other commercial symbol; making a material misrepresentation of fact to the grantor relating to the dealership; attempting to transfer the dealership, or a portion thereof, without authorization of the grantor; or insolvency, filing or suffering to be filed against any voluntary or involuntary bankruptcy petition, or making an assignment for the benefit of creditors or similar disposition of assets of the dealer business.

Another change is providing a dealer 60 days written notice of termination, cancellation or non-renewal and 30 days in which to cure the claimed deficiency. The dealer also has the right to cure three times in a 12-month period. If the reason for termination, cancellation or non-renewal is due to violation of a public health standard, the dealer shall be entitled to immediate written notice and have 24 hours to cure such violation.
For information, contact IFA Director of Government Relations Troy Flanagan at tflanagan@franchise.org or 202-662-0792.

Oklahoma, South Carolina Keep Immigration Hot as State Issue
On June 4, S.C. Gov. Mark Sanford (R) signed sweeping legislation aimed at cracking down on illegal immigration in the state. The new law, immediately effective, requires employers to verify the legal status of workers using an S.C. driver’s license, ID card, or documents needed to obtain one. Employers may also use Homeland Security’s E-Verify system. Companies with 100 or fewer employees have until July 1, 2010 to comply with the new law.

The law has two categories of penalties: Businesses that do not verify the immigration status of workers could be fined $100 to $1,000 for each worker not verified. Employers are given 72 hours to verify all new employees’ status. The second category involves businesses that knowingly hire illegal immigrants. They would be shut down for 10 to 30 days for a first offense, up to two months for a second offense and five years for a third offense. Reinstatement fees would cost up to $1,000. In all cases, illegal workers must be immediately fired.

S.C. lawmakers followed Arizona, Colorado, Georgia and Oklahoma in moving reform in the absence of federal action. Reform is not considered likely during 2008. In Oklahoma, a U.S. District judge postponed enforcement of the employer-related section of that state’s immigration law, ruling it “substantially likely” to unconstitutionally interfere with federal regulation of the employment of unauthorized workers.

Contact IFA Director of Government Relations Troy Flanagan at tflanagan@franchise.org or 202-662-0792 for more information.

President Issues Order Requiring Federal Contractors to Use E-Verify
President Bush recently signed an Executive Order requiring federal government contractors to use E-Verify to confirm the employment authorization of new hires and persons assigned to perform work on future federal contracts. E-Verify is an Internet system operated by Homeland Security and the Social Security Administration to electronically verify eligibility of newly-hired employees.

According to the order, “contractors that employ illegal aliens cannot rely on the continuing availability and service of those illegal workers, and will inevitably have a less stable and less dependable workforce.” The specific language requires all federal agencies and departments that enter contracts to require that the contractor agree to use E-Verify. This applies to all hired during the contract term by the contractor to perform employment duties within the United States and anyone assigned by the contractor to perform work within the United States on the federal contract.
Homeland Security will issue rules and regulations to implement the requirements and allow a 60-day comment period. IFA will review the proposal and comment as appropriate.

For information, contact IFA Director of Government Relations Jason Straczewski at jstraczewski@franchise.org or 202-662-0797.

Access Guidelines for Disabled Proposed
The Justice Department recently issued a rulemaking notice on new accessibility guidelines. Title III of the Americans with Disabilities Act requires any entity providing services to the public, such as hotels, restaurants, theaters, and retailers, be accessible to persons with disabilities, subject to certain limitations. Requirements cover existing facilities, remodeling, and new construction. DOJ’s rulemaking will have to address how the new guidelines will apply to existing facilities. If they are required to retrofit and follow the new regulation, the economic impact will be staggering, diverting resources away from hiring, employee benefits and services provided to customers and the public.

IFA will review the proposal and submit comments before the final rule is published. To review the proposed new rule and guidelines, visit www.ada.gov.

Franchise Appreciation Day Registration Open  
As the political season intensifies with the upcoming presidential election, now is the time for the franchising community to get more politically active. IFA’s 9th Annual Franchise Appreciation Day, sponsored by ADP Small Business Services, will be conducted Sept. 15 to 16, in Washington, D.C. The two-day event is a great opportunity for the franchising community to learn about policy issues and engage in discussions with Congress.

Register now to attend, and help lawmakers understand how their decisions affect the operation of successful franchise business.

IFA Launches New Advertising Program
To provide IFA’s franchise-system members with a vehicle to reach out to the nearly one million small businesses that compose the industry, the association has launched the “Members Serving Members” program. The program was designed for franchisors who have goods and services that may meet other members’ needs.

Companies enrolled will offer other IFA members and their respective franchisees some form of discount on the goods and services that their systems offer. The discounts may be determined by each member. In addition, a number of electronic and print advertising products are available to these companies to enable mass dissemination throughout their franchisee networks.

For more information, contact IFA Director of Advertising Bill Burris a bburris@franchise.org or 202-662-0762.

Update Your Company’s Listing on Franchise.org
To ensure your company listing appears up-to-date in the 2008 Fall/Winter edition of IFA’s popular Franchise Opportunities Guide, member companies must submit changes online by July 7. Within Franchise.org, members have access to a log-in area where listings can be updated, leads tracked, press releases displayed and membership and advertising accounts can be viewed and paid.

Go to the member log-in area on the Member-Business Resources tab or go to http://members.franchise.org and then enter username and password.

For assistance, contact Connie Greco of IFA’s Membership Department at cgreco@franchise.org or 202-662-0765.

Marshall Scholarship Applications Open
The IFA Educational Foundation is now accepting applications for the Irl Marshall CFE Scholarship, which provides a stipend of $2,500 that may be applied toward the tuition for programs offered for Institute for Certified Franchise Executives credit. The total amount of the scholarship must be used within a three-year period. The award will be presented during the 2009 IFA annual convention in San Diego.

Applications are available at Franchise.org in the Programs and Scholarships section. The deadline for submission is Nov. 30.

The IFA Insider is written, edited and produced by Laura Fenwick, Terry Hill, Jodi McCray and Hilary Strahota.
IFA Insider newsletter is published bi-weekly (24 times a year). Correspondence: International Franchise Association, 1501 K Street, N.W., Suite 350, Washington, D.C. 20005, (202) 628-8000. Copyright 2008 International Franchise Association. Contents of this publication may not be reproduced, stored in a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without prior permission of the publisher. The International Franchise Association sends out email and fax updates and opt-in email newsletters to its membership. If you would no longer like to receive one or all of these communications follow the "Unsubscribe" instructions found at the bottom of each email, fax or newsletter. For further questions, please call our Membership Service Department at 202-662-0765 between the hours of 9:00 a.m. and 5:00 p.m. Eastern, Monday-Friday or email ifa@franchise.org.