June 19, 2006 Volume 11, Issue No. 13
IFA Chairman Lawrence “Doc” CohenCFE, not only came to the nation’s capital to launch the 15th annual International Franchise Expo, but used the time in town to spend a day lobbying congressional offices.
In visits with senior aides of key policymakers from both parties, Cohen pressed for action on comprehensive immigration reform and small-business health plan legislation. The meetings were important opportunities to remind policymakers about the critical role of franchised businesses in the nation’s economy, and Cohen also took advantage of the sessions to promote the upcoming Sept. 25-26 Franchise Appreciation Day with key congressional staff.
Prior to his day of Capitol Hill visits, Cohen attended a major speech by President Bushat the US Chamber of Commerce where the president laid out the administration’s vision for immigration reform. The president called for an immigration bill that would accomplish five key goals, including enhancing border security and ending “catch and release” for those attempting to enter illegally; establishing a temporary guest worker program; improving employer accountability and enforcement of the laws; creating an orderly path to citizenship for undocumented workers with deep roots in this country; and emphasizing English as the national language.
As Bush set the stage for his immigration policy remarks, he paid particular attention to the nation’s economic outlook. “America’s risk-takers – business owners, both small and large, are hiring people,” the president declared. “If you want a job in America, you can find a job in America. This economy of ours is growing at 3.5 percent last year, 5.3 percent in the first quarter of this year. The national unemployment rate is 4.7 percent; 5.2 million new jobs have been created since August of 2003; small businesses are flourishing; productivity is high, after-tax income is up; home ownership is at an all-time level. This economy of the United States is strong, and we intend to keep it that way.”
STATE PRIMARIES SOUND POSITIVE NOTE FOR FRANCHISING
A number of states conducted primary elections for Congress on June 6 and the results are encouraging for IFA and business trade groups. In an open congressional seat in Iowa, hotel franchisee and restaurant operator Mike Whalenwon the Republican nomination to succeed current Rep. Jim Nussle, who is running for governor. Whalen is a strong economic conservative with a pro-immigration agenda, so his win is a good sign for the issue of comprehensive immigration reform. IFA’s FranPAC supported Whalen in this race.
In a bitterly contested three-way race, Whalen garnered 48 percent of the vote. He will face the Democratic nominee, Bruce Braley, in November. Braley, a trial lawyer, won his party’s nomination with a number of big labor union endorsements.
Another closely-watched race was the special election contest in California’s 50th District to succeed former Rep. Randy “Duke” Cunningham. This race, which many observers had pegged as an early indicator of Republican weakness, was won by the Republican candidate, Brian Bilbray, who took more than 49 percent of the vote against his Democratic opponent, Francine Busby. Busby’s total of 45 percent of the vote was just a slight improvement over the 44 percent that John Kerrycaptured in the district during the 2004 presidential election, leaving most observers to conclude that the Democrats still have a significant uphill struggle to gain a majority in the House of Representatives.
The next big primary election on the IFA radar screen is the June 27 contest in Utah’s Third District. IFA has worked closely with the incumbent candidate, Rep. Chris Cannon, who faces a strong primary challenge from developer John Jacob, who outpolled the incumbent at the state GOP convention. Cannon has attracted significant opposition from conservatives in his district due to his strong support for comprehensive immigration reform, a key item of the IFA legislative agenda.
As this edition of the IFA Insiderwent to press, preliminary results from FranPACs popular annual wine auction, conducted during the board of director’s summer session in Half Moon Bay, Calif., added nearly $40,000 to the political action committee’s coffers. Complete details will appear in the next newsletter.
MEDICAID REPORTING BILL ADVANCES IN RHODE ISLAND
On May 25, Medicaid disclosure legislation was passed by the Rhode Island Senate. The bill, S 2330 by Sens. Charles Levesque, Rhoda Perry, Elizabeth Roberts, Hanna Galloand Susan Sosnowski, would require the state’s department of human services to annually submit a public health beneficiary employer report to the legislature. The bill now goes to the House of Representatives for consideration.
The report would identify the employers of proposed beneficiaries of health care benefits through RIte-Care, RIte Share and or Medicaid. It must also be noted in the disclosure whether the employer offers health benefits to its employees, whether the employer participates in the RIte Share program, and the cost to the state for providing health care to their employees and enrolled dependents. A threshold of 50 or more recipients of public health benefits of any company and their subsidiaries throughout the state is required to be included in the report. The legislation currently does not take into account the differentiation of franchisors and franchisees. IFA is working with in-state allies to seek clarification as the bill is considered by the House of Representatives.
For more information, contact IFA’s Director of Government Relations Troy Flanaganat 202-662-0792 or tflanagan@franchise.org.
DEATH TAX REPEAL DELAYED IN SENATE
On June 8, the Senate considered, but did not pass, full repeal of the “Death Tax” or estate tax, HR 8. A form of double- and often triple-taxation, the tax is an unfair burden on America’s business owners and their communities. While the tax was temporarily repealed in 2001, it will return at a 55 percent rate in 2011 if Congress does not permanently repeal it.
The US House of Representatives has already passed permanent repeal legislation, but the Senate must pass HR 8 as well in order to end the unfair and often unintended destructive consequences of this tax on America’s entrepreneurs and their families.
Visit IFA’s free advocacy Web site, www.franchisingvotes.com to send a pre-drafted, editable e-mail to your senator expressing support for the removal of the Death Tax.
For more information, contact IFA Manager of Government Relations and Political Education Jessica Bonnanoat 202-662-0775 or jbonanno@franchise.org.
GULF COAST BUSINESS INVESTMENT SESSION PLANNED
The US Department of Commerce and the Federal Office of Gulf Coast Rebuilding will host a briefing for business and investment opportunities June 27 at Commerce’s Washington, DC headquarters. The session is designed to inform business leaders of the opportunities and incentives for investment in the Gulf Coast region, including federal “GO Zone” legislation and new markets tax credits. Commerce Secretary Carlos Gutierrezand federal and state officials will be on hand to offer information about the opportunities available in the region’s reconstruction.
Visit www.gulfcoastopportunity.gov for information.
GRASSROOTS EFFORTS URGED FOR FRANCHISE APPRECIATION DAY
Franchisees, franchisors and suppliers are urged to gather in the nation’s capital during Franchise Appreciation Day to raise legislators’ “franchise quotient” during the Sept. 25-26 activities.
The event is designed to enable members of the franchising community to share information about the sector’s economic contributions, individual businesses and especially their views about the effects of certain legislation on their brands. Grassroots advocates play key roles in achieving and maintaining a safe regulatory and legislative environment for the sector. Participants will be briefed prior to visiting their members of Congress and will hear from policymakers and regulators. Popular political analyst Charlie Cookwill offer his views of the upcoming election and other key public-policy items.
To obtain program and registration details, visit Franchise.org.
FRANCHISE PAVILION SHOWCASES MINORITY OPPORTUNITIES
The first National Urban League-Urban Entrepreneur Partnership’s Franchise Pavilion will be presented in cooperation with IFA’s MinorityFran Program, July 27-29. The conference is expected to draw thousands of African-Americans from around the country. More than a dozen MinorityFran participating companies will be exhibiting.
Launched in February, MinorityFran was developed by IFA to build awareness of the opportunities available through franchising in minority communities and increase the numbers of minority franchisees, employees and suppliers.
For more information, contact IFA Director of US Emerging Markets Sonya Brathwaiteat 202-662-0784 or sbrathwaite@franchise.org.
FRANCHISE EXPO GROWING, GAINING IN POPULARITY
The 15th annual International Franchise Expo attracted nearly 15,000 attendees to the Washington, DC Convention Center in early June. The number of exhibitors increased from 270 last year to 331 this year while exhibitors participating in IFA’s VetFran and MinorityFran programs also staged significant presences with 50 and 25 booths respectively.
“We’ve seen great quality in the visitors that have stopped by our booth at the IFE, and we spoke with some attendees that came specifically to speak with Express Personnel Services. These are interested, qualified visitors that are looking for a real opportunity–not just tire-kicking,” said Express Personnel Services Assistant Director of Franchising Kimberly D. Ratley.
“This is our first time exhibiting at the IFE, and we’re already on board for 2007. We acquired some great leads at the IFE,” said American Prosperity Group General Manager C. John Cannon.
“We were extremely pleased with the quality and quantity of the visitors at IFE. We used the IFE to announce our national launch of our franchise concept,” said Data Preserve President and COO James Walker.
The trade show garnered strong media coverage as well, including Fox 5 Morning News, Maryland Public Television, Voice of America Television Network, Russian Television International, Univision Television Network, Associated Press Broadcast, ABC Radio Network-WMAL-AM, Washington Post, Washington Times, Crain’s Chicago Business and various regional business papers. The next such event will be the West Coast Franchise Expo Nov. 3-5 in Los Angeles.
Visit www.WCFExpo.com for details.
FRANCHISING WORLD MAGAZINE BEGINS FRANPAC REPORT CARD
The July issue of Franchising Worldmagazine will begin a new feature that will provide a snapshot of IFA’s financial support of candidates to federal office. The FranPAC “Report Card” will provide current information on cash-on-hand, receipts, expenditures and a list of candidates and the financial support they’ve received from the political action committee.
To learn more about FranPAC and to view the most frequently asked questions, visit Franchise.org, and go to the Government Relations page.
WELCOME NEW MEMBERS !
Franchise Systems:AlliNew Publishing, Inc., Plymouth, Mass., Contact Allison NuovoMichael NewmanFrank BrownMona SappenfieldAdrienne KallweitJeanna KishRonny Baroody JrMark HorlerTom PalazzoMarcus PriceMichael McNinchRonald McArthurNicole DizioTony NelsonJames WalkerJohn L. Scott.
Suppliers : Commerce Bank, Vienna, Va., Contact Robert GangiJohn H. PrattDan SchuermanAnthony ConaghanHoward TatzScott C. KernKathy Larson.
REMEMBERING THOSE WHO SERVE
How can franchised businesses contribute to make a difference in the lives of those who have served in the military service to protect their nation? At metropolitan Washington, DC-area Walter Reed and Bethesda Naval hospitals, facilities do not have enough rooms to accommodate the visiting loved-ones and family members. Since late 2004, more than 500 individuals and businesses in the Washington, DC-metropolitan area donated funds to help service members and their families.
In February 2005, the Yellow Ribbon Fund was specifically created to welcome military personnel into the community through local volunteers. The fund was organized by volunteers to welcome wounded service members into the community and to provide funds for taxis, rental cars, apartments and hotel rooms. Volunteers serve as mentors for those who can work as interns, learning new trades and professions and in many cases take those recovering from injuries on outings, such as golfing, fishing, hunting or dining or shopping.
Yellow Ribbon Fund Chairman James BuggCFE, who served as IFA chairman in 1994, co-founded the fund. To date, the group has raised more than $300,000 without the services of professional fund-raisers. As the war continues and more injured troops arrive, the demand for assistance continues to grow. Bugg urges members of the community of franchising to aid in this important effort by making contributions to the 501 3c non-profit organization. Contributions are tax deductible.
For details, visit www.yellowribbonfund.org.
FRANCHISE DEVELOPMENT SEMINAR OPENS JUNE 23 IN PHILADELPHIA
IFA’s Franchise Development Seminar series will provide presentations on proven methods for building franchise brands when it opens June 23 at the Inn at the Union League in Philadelphia. Franchise experts will examine all aspects of franchise expansion, including Web advertising as it relates to lead generation, when and if to use an outside broker, defining the ideal franchisee, making technology work for the system and conducting an effective Discovery Day.
Other 2006 dates and locations include Sept. 27–Washington, DC (in conjunction with Franchise Appreciation Day) and Nov. 1- 2–Los Angeles Super Session (in conjunction with the West Coast Franchise Expo).
For program and registration information, visit Franchise.org.
FIND IT AT FRANCHISE.ORG
Visit Franchise.org to obtain the facts, figures and news needed to remain to up to date on the key programs and initiatives affecting the franchising sector.
What’s hot in the government relations arena?
http://www.franchise.org/content.asp?contentid=374
Learn the status of legislation affecting the franchising sector by visiting the Government Relations section of the IFAWeb site and learn how the franchise community can effectively voice its concerns.
Franchises get help finding talented personnel
http://www.franchise.org/content2.asp?contentid=873
Augment your HR department’s search for management talent within your franchise system by visiting the IFA Career Center.
Franchise Pavilion to open in Atlanta
http://www.franchise.org/article.asp?article=1457&paper=93&cat=363
Thousands of African-Americans from around the country are expected to attend the first National Urban League-Urban Entrepreneur Partnership’s Franchise Pavilion this summer. Presented in cooperation with the International Franchise Association’s MinorityFran Program, the event is set for July 27-29 at the Georgia World Congress Center in Atlanta.
Sowing tomorrow’s victories starts today
http://www.franchise.org/content.asp?contentid=863
Franchise Appreciation Day is Sept. 25-26, but participants can start now to get prepared to sow a bumper crop of positive influence by registering before Aug. 18.
Major awards deadline is June 30
http://franchise.timberlakepublishing.com/files/Awards%20Nommy%20Form%202006_050906.pdf
Time is short to nominate those outstanding contributors to the franchising community. Use the nomination form to make your selections for Hall of Fame, Entrepreneur of the Year, Bonny LeVineand Ronald E. Harrisonaward winners. Nominations are due June 30.