Franchising World August 2011




By: Alisa Harrison

 

The International Franchise Association Board of Directors gathered June 6-9 in Coeur d’Alene, Idaho for its summer meeting. The board passed an updated Strategic Plan for 2012-2014, allocated new resources for the Veterans Transition Franchise Initiative and addressed many of the   critical issues facing the franchise industry, including access to credit and health care costs. 

IFA Board Approves Strategic Plan for 2012-2014 
The IFA Board unanimously passed a new Strategic Plan presented by the Strategic Planning Working Group. The plan brings focus to what IFA will achieve during the life of the plan. Driven by an envisioned future that realizes the full potential of the industry and the organization, the plan includes assumptions based on factors known today, but is flexible to adjust to emerging issues and threats. The plan will guide annual operational plans to achieve performance measures and ensure IFA is on the right path to remaining the preeminent voice and acknowledged leader for franchising worldwide. 

The plan maintains the mission of the IFA: to protect, enhance and promote franchising with a vision that the association be the preeminent voice and acknowledged leader for franchising worldwide. To achieve that vision, the plan sets government relations and public policy, media and public relations, and education and professional development as the strategic priorities, which will be the guideposts for the FY 2012 budget planning to allocate resources to meet the objectives of the Plan.     
The plan reflects a few specific priorities, including:
   • Recognition that more government activity is expected to increase at the state and local levels so more resources and emphasis are needed.
   • A specific objective to address the new health care law, including supporting repeal of any provision that negatively affect franchise business owners or which adds additional cost to doing business.
   • Introduction of legislation that allows franchise businesses to pool together to purchase health insurance coverage across state lines and or within a franchise system.

Board Allocates Additional Resources to Enhance VetFran   
In recognition that more troops will be returning home   from wars in the Middle East, IFA VetFran Committee Chairwoman Mary Thompson, CFE, who is president of Mr. Rooter, outlined an enhanced initiative developed by the VetFran Committee to   help connect veterans with participating companies in VetFran. The project will support the advocacy efforts to pass the Help Veterans Own Franchise Act in Congress. The bill establishes a tax credit for franchise businesses that choose to offer qualified veterans a discounted initial franchise fee. The tax credit would amount to 50 percent of the total franchise   fee discount offered by the franchisor to the franchisee and would be capped at $25,000 per unit. It also provides a tax credit to the veteran who chooses to purchase a franchise and open a business in his local community. 

The board voted to allocate additional resources to support the initiative, which is scheduled to be launched during the IFA Public Affairs Conference that is scheduled Sept. 13-14 in Washington, D.C. 

FranPAC Fundraising Exceeds $120,000   
By establishing and maintaining direct   lines of communication with lawmakers, FranPAC, IFA’s political action committee, serves as a valuable tool for building   positive relationships with elected officials. 

FranPAC raised a record-breaking amount of funds during the board meeting. The PAC raised more than $104,000 during the wine auction and just under $15,000 for the wine raffe. The final tally of funds raised during the week was a record $120,000 for the PAC. FranPAC supports pro-business, pro-franchising candidates for the U.S. House of Representatives and Senate. 
FranPAC is a vital part of the IFA’s government relations program. All of the funds contributors helped the association raise during the board meeting will be used to support pro-franchise candidates who understand the value of franchising. IFA’s continued effort will help ensure that IFA possesses the financial resources to support and help elect federal representa-tives that are sensitive to the concerns of the franchise community. 

Additional fundraising was led by members of the FranPAC Advisory Board and President’s Council, promoting the 365 Club, 1K Club and Max Donor program. The successful fundraising is a great example of the franchising community coming together to promote IFA’s legislative and political agenda. 

In addition, a big thank you goes to Wine Auction organizers and auctioneers DOC & Associates President Lawrence “Doc” Cohen, CFE, and DLA Piper Partner Dennis Wieczorek, for the countless amount of time spent assisting with the auction. The duo helped break a record from 2010 by more than $40,000. 

FranPAC has more than $270,000 cash on hand and a total of $472,000 in personal pledges for 2011, well over its goal of $375,00 for the year and in line to help that association reach its $1 million goal this election cycle. The success of FranPAC in the first half of the year is a direct result of the steadfast support from IFA’s dedicated members. 

Key Issues—Credit, Health Care 
There are many issues affecting the franchise industry and the IFA Board of Directors discussed IFA’s work and efforts to address them. IFA President and CEO Steve Caldeira, CFE, updated board members on:
   • Supplementing the Small Business Credit Access Campaign following the successful Small Business Lending Summit in April, including a recent meeting with FDIC Chairman-designate Martin Gruenberg about the unintended consequences   of recently imposed financial regulations.
   • Participating in the U.S. Conference of Mayors meeting on how credit access is impeding economic development in cities across the country.
   • Launching a Small Business Lending Toolkit to aid lenders and franchise small businesses in their joint pursuit to make credit more available. 

After credit access, health care reform and its impact are the greatest issues of concern to IFA members. The Affordable Care Act, passed by Congress in 2010, sets in motion the largest change in employer-provided health benefits since World War II. IFA’s position has not changed–it advocates for a full repeal of the law. However, if that is not possible,   there are provisions of the law and its regulations which may be modified as the battle over health care reform shifts from the Congress to government agencies.

To support this effort, the board directed the staff to pursue a study to illustrate how the provisions affect franchise businesses. A preliminary report will be completed by the IFA Public Affairs Conference in September to support IFA’s advocacy efforts with policymakers considering changes to the health care law, but equally important, to inform members about how they can be better prepared to consider options for restructuring their benefit programs. 

Alisa Harrison is vice president of communications and marketing. She can be reached at 202-662-0775 or 

aharrison@franchise.org

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