For immediate release
Contact: Alisa Harrison, 22-628-8000
WASHINGTON, Oct. 3, 2008—The International Franchise Association (IFA) today praised the House of Representatives for passing the economic stability package paving the way for the President’s signature.
“We are very pleased that lawmakers heard the pleas of millions of small business owners who are feeling the effects of the credit crunch on Main Street.,” said Matthew Shay, IFA President and CEO. “It is very unfortunate that we find ourselves supporting such massive government intervention, but this package is the right solution for this extraordinary situation and we thank those who voted for it.”
IFA has worked to ensure that members of Congress heard how franchised business owners are impacted by the credit crisis, and thousands of franchise business leaders have called their elected officials this week to ask for support on this critical measure.
Calls and messages to Congress often included real world examples of the credit crisis. The association cites an example of one franchisee member in California who has been trying to sell one of his stores. A qualified buyer has been found, but the financing is not there today. “This would have been a slam dunk before this mess,” writes the franchisee in a message to his Congressman.
“This is a prime example of how Wall Street’s woes have cascaded down Main Street,” Shay said. “The store’s seller has his capital tied up in a store he no longer wants to operate and the buyer’s dream of a business ownership opportunity is postponed. The faster that we act to resolve the crisis, the faster our members can get back to creating jobs and ownership opportunities for Main Street.”
The franchise business industry accounts for significant economic activity in the United States—providing nearly 21 million jobs and contributing $2.3 trillion to the private-sector economy. The industry has seen significant growth in recent years, but to continue that growth, reliable and available credit is critical.
About The International Franchise Association
The International Franchise Association, the world’s oldest and largest organization representing franchising, is the preeminent voice and acknowledged leader for the industry worldwide. Approaching a half-century of service with a growing membership of more than 1,300 franchise systems, 10,000-plus franchisees and more than 500 firms that supply goods and services to the industry, IFA protects, enhances and promotes franchising by advancing the values of integrity, respect, trust, commitment to excellence, honesty and diversity. For more information, visit the IFA Web site at www.franchise.org.