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by Robert Cresanti, CFE
Whomever you voted for in the Nov. 8 Presidential election, or even if you are an observer from a country outside the U.S., now is the time to band together in support of a pro-growth economic platform that reduces the burdens on small franchise businesses. While many of the details of President-elect Donald Trump’s policies are still unclear, his election is certain to alter the landscape for the franchising community. Impacts of this election can already be seen by various business and interest groups scrambling to assert their priorities in the days following the election, which capped a fiercely-contested campaign.
This was truly a historic election by all accounts. However, now that the votes are counted, the real work begins. America’s 733,000 franchise businesses which support 8 million jobs and 3.5 percent of U.S. GDP stand ready to work with the new administration and leaders in Congress to bring the country back together by developing a pro-growth economic platform that balances wage growth with a reduction in the regulatory burdens placed on franchises. We are excited about working with members of both parties to put the country on a long-term path towardeconomic expansion.
The American middle class, upward mobility, and opportunity have suffered from years of political gridlock and business as usual. This election marks a sea change in how the American people expect their elected officials to conduct themselves. We have to find a third way — not the Republican way, not the Democratic way, but the American way. In this election, voters clearly rejected candidates who pledged to continue governing by regulatory fiat or impose policies that would destroy jobs and crush small businesses, which are the engine of the economy. Examples of this over-regulation include the National Labor Relations Board’s expanded joint employer definition and changes to the Department of Labor’s overtime rule.
Prior to the election and in concert with more than 1,100 members of the business community, IFA presented a letter of unity to the next president, expressing a desire to work together in a constructive, respectful way. The letter, which is posted on the National Association of Manufacturers’ website (www.nam.org), demonstrates the commitment the business community has toward bringing the country together and restoring faith in our shared public and private sector institutions. “It is our shared belief that we, representing companies large and small, have an urgent need to restore faith in our vital economic and government institutions and to bolster the promise of America — to lift everyone up and leave no one behind,” the letter states. “We will look for areas upon which we agree and can work productively with your new administration.”
Among the letter’s signatories is IFA Chairman Aziz Hashim, Managing Partner of NRD Capital, who highlighted franchising as the most accessible pathway to the American Dream. “We must never forget that we have an ongoing duty to lift everyone up and show how important businesses can be in helping to democratize opportunity for all Americans regardless of their background, education or station in life,” Hashim explained. Other franchise leaders who signed the letter include FranNet CEO Jania Bailey, CFE, Sport Clips CEO Gordon Logan and FASTSIGNS International CEO Catherine Monson, CFE — all members of the IFA Board of Directors.
CKE Restaurants President & CEO Andrew Puzder, who is also a member of the IFA Board of Directors and served as an economic advisor to Trump during the campaign, told CNBC on Nov. 9 that he feels much better about finding solutions to the threats that face franchising, including joint employer and overtime, post-election. “I feel better about what’s going to happen with this joint employer standard, which was going to destroy the franchise business model,” he said. “There are so many things out there right now that are so much brighter this morning than they were yesterday morning.”
The election represents a point of inflection where the possibility exists that things could fall into place for small businesses to enter a new era of growth. While there are no guarantees, this is an opportunity for change. It’s a moment to be seized, including at the grassroots level. Let the new administration and your representatives in Congress know where you stand, and why franchising is so important to the U.S. economy. If the franchising community stands together, the chances increase that the messaging will get through!
Robert Cresanti is President and CEO of the International Franchise Association.