IFA, U.S. Conference of Mayors Partner to Promote Job-Creation

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Franchising World August 2011




By: Wayne Weikel

 

If someone could tell members of the franchise industry that 89 percent of their company’s sales were likely to come from one particular geographic area, would individual companies be interested in knowing where that might be?  The answer is actually quite simple–the modern American city.  After a century of growth, metropolitan areas are now the hub of both population and commerce in this country.  In 2010, cities made up over 89 percent of the country’s gross domestic product. 

Recognizing the major role cities play in the U.S. economy, the International Franchise Association has partnered with the United States Conference of Mayors to better educate mayors across the country about the economic opportunities franchising can bring to their local communities.  In the latest effort to promote franchising with local leaders, IFA Chairman Jack Earle (McDonald’s multi-unit franchisee and managing partner of Earle Enterprises, LP), and FASTSIGNS International CEO Catherine Monson, CFE, an IFA Board of Director’s member, participated in a panel discussion, titled “Mayors and Small Business/Franchise Owners–Building a New Strategy to Retain and Create Jobs in America” during the USCM’s 79th annual meeting in Baltimore, Md.  They were joined on the panel by outgoing USCM President, Burnsville, Minn. Mayor Elizabeth Kautz, Charlotte, N.C. Mayor Anthony Foxx and American Management Services, Inc. CEO George Cloutier, a widely respected small-business expert.

Spurring Economic Growth
Before an audience of 300 mayors, the panel discussed many ways that franchise business owners and mayors can work together to spur economic growth in urban areas.

Monson told the audience that there were many ways that mayors can help unravel the confusion of local bureaucracy, including creating one-stop licensing and zoning offices, having an ombudsman to the business community and developing business-friendly Web resources. 

Before an audience of 300 mayors, the panel discussed many ways that franchise business owners and mayors can work together to spur economic growth in urban areas.

“Sometimes just knowing who to call with a question is all a business might need,” said Monson.  “The less time an entrepreneur has to spend figuring out how to be in compliance with local regulations, the more time they can spend growing their business–yielding more jobs and more tax revenue.”

A common thread to the day was utilizing technology to ease the burden on local businesses.  The winner in this regard may have been Mayor Kautz, who explained that in Burnsville, Minn., they had developed a Smartphone App for residents and business owners that will allow them to communicate with the local government and easily pay any necessary fees for licenses or permits all over their phone.

Mayor Foxx, who serves as chairman of the USCM’s Task Force on Small Business and Franchising, emphasized how important small businesses are to local communities and listed numerous ways that Charlotte, N.C. has worked to bridge any gaps with the businesses in the city.  Among other things, he recommended mayors conduct a survey of small-business owners to gauge business confidence in the local community and host regular small-business meetings which should include bankers and lenders.

Health Care Reform Implications
Like many conversations in the small-business community, the topic eventually came around to the new health care law and the uncertainty that business owners face when making long-term plans for their company.

Cloutier said that even after studying the issue, he is still unsure exactly how all the regulations will affect a company’s bottom line, saying, “The devil is in the details, but the fact remains I do not know what health insurance will cost me in two years.”

Drawing on his lengthy tenure as a successful small businessman, Earle was able to bring the health care debate back to the IFA’s biggest issue: access to credit.  In his view, uncertainty over health care could present an overlooked liability in the lending community. He suggested that when a bank looks at a company’s bottom line, the company’s profit margin might look decidedly different based on how all the new regulations are drafted and that could easily be the difference between getting a loan or not.

Mayor Foxx received a round of applause from audience members after saying that it would be better to focus on efforts to modify the law, for as a country we cannot continue to let citizens go without insurance.  He offered to work with a task force of small-business owners and mayors to help clarify some of the uncertainty over health care.

Defending Franchising
During a question-and-answer period after the panel’s formal presentation, a number of mayors had specific questions on how they can help defend franchising from some common criticism that may be levied by their local independent businesses.

The questions proved useful as an opportunity for panelists to again shed light on the fundamental aspects of the franchising business model to the mayors in attendance.   Monson explained that while the sign above the door may indicate a nationally known brand, the local owner is part of the community who creates jobs, pays taxes, supports community activities, and votes.  Like any other entrepreneur, the success of a franchise would depend upon the franchisee’s own capital, hard work and long hours.

As always, mayoral interest in the IFA’s VetFran and MinorityFran programs remained high.  Through these programs, IFA engages mayors and economic development officials across the country to host “One-Day Franchise Opportunities” seminars for minorities, veterans and women.  The programs offer IFA members the opportunity to expand their reach and connect with greater pools of franchise candidates and mayors the opportunity to bring together constituents and the business community for a real discussion about economic development in their local communities.  The panel received numerous questions about these programs and how their city could benefit. 

IFA President and CEO Stephen Caldeira, CFE, who also attended, made mayors aware of the IFA’s efforts lobbying Congress to re-introduce the Help Our Veterans Own Franchise Act, to ensure that America’s brave young men and women returning from all corners of the world have opportunities to become entrepreneurs and transition to successful lives in the civilian economy.  He explained how mayors could play a vital role in the bill’s passage and invited interested mayors to join in the IFA’s efforts.

In closing, Mayor Kautz summed up the theme of the day quite accurately by saying, “Together we can all make a difference … you have a partner at the local level.”

Wayne Weikel is director of government relations at the International Franchise Association.  He can be reached at 202-662-0792 or

wweikel@franchise.org

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