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IFA OPENS EXPO WITH NEW ISSUE ADVOCACY CAMPAIGN, HIGHLIGHTING POSITIVE ECONOMIC IMPACT OF FRANCHISING

New York, N.Y., June 18, 2015 – The International Franchise Association, the world’s largest organization representing franchise owners, released the first National Franchise Report: Two Year Review, presented by ADP during a press event at the International Franchise Expo in New York. The new report highlights job growth and economic output generated by the franchise industry over the past two years.

In conjunction with IFA’s grassroots advocacy initiative the Franchise Action Network (FAN), IFA also launched a new issue advocacy campaign to tell the true story of the franchise business model from the perspective of franchisees involved in the Franchise Action Network. The story is that locally owned franchises are America’s hidden small businesses behind the many familiar logos and trusted brands which seek to increase opportunity—not just for themselves—but also for their communities.

The new campaign includes advertising, educational events and grassroots advocacy that focuses on supporting pro-franchising policies in the states and at the federal level in Washington. The campaign marks the next phase of IFA’s comprehensive advocacy and grassroots efforts and coincides with the one year anniversary of the Franchise Action Network (FAN), which has grown from approximately 1,100 to more than 7,000 franchise community advocates in just one year, all of whom aim to make their voice heard in the political and legislative process at all levels of government to protect the franchise business model.

“Franchising continues to grow, create jobs and career opportunities for millions of Americans,” said IFA Chair and Chair of the Board for TWO MEN AND A TRUCK Melanie Bergeron. “This year’s Expo and franchise report clearly demonstrate entrepreneurs from across the country remain drawn to the franchise business model. Today, we are building on that success by expanding our Franchise Action Network and bringing a strong, positive and pro-franchising message directly to policymakers. Franchise business owners are on the front lines of the economy and have valuable perspective to share.”

Franchise Action Network member and TWO MEN AND A TRUCK franchisee Pedro Gallegos agreed. “I am passionate about franchising because of the opportunities it has afforded me and my family. I value the independence I have as a small business owner as well as the support my franchisor has given me. I want to be clear about one thing – I run my own business. I manage the day-to-day operations,” Gallegos stated “I know my books better than any unelected bureaucrat and it is good for me and the economy to keep it that way.”

ADP’s first National Franchise Report: Two Year Review only reiterated that the franchise industry remains strong, despite headwinds. The report analyzed two years of data about job creation and economic output generated by the franchising industry. In its analysis, ADP found that since the financial crisis of 2008, small companies such as franchisees (with 1-49 employees) increased employment at a faster rate than mid- or large-size companies. In addition, the growth in U.S. franchise employment consistently outpaced the increase in employment nationally and among other types of small businesses.

Ahu Yildirmaz, vice president and head of ADP’s Research Institute, said, “Franchises have had a consistent rate of job creation over the past two years. Over the same time period, franchise market growth has outpaced total employment in the U.S.”

IFA Educational Foundation President John Reynolds gave highlights of the mid-year Franchise Business Economic Forecast, prepared by IHS Economics for the IFA Educational Foundation. Reynolds stated that franchise businesses are a major driver in the U.S. economic recovery, with above par contributions to GDP and job creation compared to other businesses. He added that there are hundreds of new brands that have started franchising in recent years which are creating opportunities for business ownership and jobs for many Americans. “Many people who begin their first job at a franchise business go on to work in management or owning their own franchises,” he said.

For information about the Franchise Business Economic Forecast, click here.

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About the International Franchise Association

Celebrating 55 years of excellence, education and advocacy, the International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 780,000 franchise establishments that support nearly 8.9 million direct jobs, $890 billion of economic output for the U.S. economy and 3 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law, technology and business development.

1900 K St., N.W., Suite 700 Washington, DC 20006 USA

Phone: +1 202/628-8000 Fax: +1 202/628-0812 www.franchise.org