IFA URGES MEMBERS TO MEET WITH LAWMAKERS DURING JULY 4th RECESS

For immediate release

Contact: Alisa Harrison, 202-628-8000

aharrison@franchise.org

www.twitter.com/IFADC

Card Check, Capital Access and Health Care Reform among Top Issues

WASHINGTON, June 26, 2009—The International Franchise Association today urged its members to meet with elected officials during the July 4th congressional recess to explain how issues currently on lawmakers’ agendas impact franchise businesses.

“During the July 4th break, lawmakers will be in their home districts and states holding town hall meetings and participating in other public events to connect with their constituents,” said IFA Vice President of Government Affairs David French. “This provides an excellent opportunity to meet face-to-face with lawmakers about how issues before Congress impact the franchise industry.”

In an action alert sent to all members, IFA urged members to tell their congressional leaders to vote “No” on the Employee Free Choice Act, “Card Check” (H.R. 1409/S. 560), which could be on the congressional agenda this Summer.

The so-called “Employee Free Choice Act” would take away a worker’s right to a federally supervised private ballot when deciding whether to join a union. It would replace the private ballot with a scheme called “card check,” which allows a union to organize if a majority of workers simply sign a card. Under this system, paid union organizers – not the federal government – oversee the process.

French said that passage of the bill will reduce incentives to grow franchised businesses in the U.S., and render existing franchises less competitive in a challenging economy.

IFA is also urging members of Congress to promote more lending and less government spending to help franchise businesses find new capital to foster development, creating more jobs and economic activity. Congress should make further changes, even temporarily, to SBA programs including increases in the dollar amounts for SBA 7(a) loan guarantees to accommodate the needs of larger- and intermediate-sized small businesses. Congress should increase the standard 7(a) maximum loan limit from $2 million to $4 million and increase the maximum guarantee amount provided to $3.6 million, consider examining a market-based loan pricing model for the SBA loan programs, and entirely rescind the SBA’s newly established cap of $250,000 on goodwill financing while data is gathered to determine if any changes are needed.

As Congress prepares to overhaul the U.S. health care system, members should oppose any legislation that would enact a government-run, public health care plan, IFA said.

“The IFA supports health care reform, but the solution should be to improve the quality and affordability of health care through market-based changes,” said French. “The focus of comprehensive health reform should be on lowering the cost of health care, improving quality of care and making health insurance affordable and equitable for small businesses.”

Congress will recess June 28 through July 6. For information about Congressional leaders’ schedule of events, visit their individual Web sites. For more information on issues impacting franchising and IFA’s positions, please visit the IFA’s Issue Page.

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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 nearly 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

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