IFA Brings Franchise Community to D.C. to Advocate for Tax Policy, Joint Employer

Annual IFA Advocacy Summit brings together 350 franchisors, franchisees, and suppliers from around the country to advocate on Capitol Hill for policies impacting franchising; Presents bipartisan Legislator of the Year Awards

WASHINGTON – The International Franchise Association (IFA) this week hosted nearly 350 franchisors, franchisees, and suppliers in Washington, D.C., to advocate for policies impacting the franchise business model while hearing from a number of lawmakers and political experts on the state of play in Washington ahead of the 2024 election. IFA also presented its bipartisan Legislator of the Year awards to six franchise champions in Congress.

“Following a landmark year when the entire Congress voted on the fundamental issue of joint employment status, franchise businesspeople shared their stories to remind lawmakers of the importance of franchised businesses to their states and districts – and why they must be protected,” said Michael Layman, IFA senior vice president of government relations and public affairs. “The IFA Advocacy Summit also enabled franchisors and franchisees to advocate on small business tax policy ahead of the inevitable tax changes coming next year. Business owners cautioned lawmakers against allowing tax increases that will harm local franchises, especially critical as small businesses are still struggling with rising costs.”

Specifically, the franchise community urged Members of Congress to support three provisions critical to franchised small businesses including the permanent extension of Section 199A, restoration of 100% bonus depreciation, and the Work Opportunity Tax Credit (WOTC) in the forthcoming tax debate with the expiration of many provisions of the Tax Cuts and Jobs Act. Advocates also reminded lawmakers of the importance of a clear and consistent joint employer standard in the wake of the National Labor Relations Board’s (NLRB) proposed rule last year.

The event comes as IFA released its third-annual Franchisee Survey earlier this week, showing that 87% of franchised businesses continue to feel a moderate to significant impact from inflationary pressures, with 80% franchise owners reporting lower business earnings in the last year in the face of increased prices and slowing consumer demand.

The IFA Legislator of the Year Awards were given to U.S. Sens. Angus King (I-ME) and Roger Marshall (R-KS) and four freshman Members of Congress, U.S. Reps. Don Davis (D-NC), John James (R-MI), Kevin Kiley (R-CA), and Hillary Scholten (D-MI) for their support of policies to protect franchising, in particular H.J. Res. 98, bipartisan legislation to overturn the NLRB’s harmful joint employer standard that passed the House and Senate earlier this year.

At the event, attendees heard from U.S. Sen. Steve Daines (R-MT), former Maryland governor and Senate candidate Larry Hogan (R-MD), Rep. Lloyd Smucker (R-PA), Georgia State Senator Jason Esteves (D-GA), as well as expert political analyst Bruce Mehlman and Pulitzer Prize winning investigate journalist Brody Mullins, among others.

The event concluded with a “FranFest” celebration featuring local School of Rock bands, joined by Rep. Ashley Hinson (R-IA) on the fiddle and Rep. Morgan McGarvey (D-KY) on the guitar.

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