In formal comments to the Federal Trade Commission™s (FTC) re-opened Request for Information (RFI) on franchisor practices and franchise agreements, the International Franchise Association (IFA) urged the FTC to respect the boundaries of the authority and adhere to its rulemaking requirements, all of which were disregarded by the FTC™s recent Policy Statement and Staff Guidance. The comments further highlight the damage potential regulation could have for viability of the entire franchise business model.

The final rule on negative options is the latest troubling example of this power-hungry FTC leaping without looking, said Michael Layman, IFA senior vice president of government relations and public affairs. The FTC has not conducted an empirical cost-benefit analysis to assess the proposed rule™s impact on small businesses, and yet it has hastily imposed this unnecessarily regulation that will hurt many franchise businesses and consumers alike by robbing them of convenience, time savings, a streamlined transaction experience, and lower costs. The rule not only disrupts a process that is working for the benefit of both consumers and small business owners, but also adds another layer of complexity into a system of billing already regulated by a host of federal and state regulations.

The International Franchise Association (IFA) today endorsed nine bipartisan candidates ahead of the November election, applauding their leadership on pro-business policies supporting America™s locally owned franchise small businesses. Named a Friend of Franchising, IFA endorsed candidates running for U.S. Senate and the U.S. House of Representatives, following several primary endorsements earlier this year.

The International Franchise Association (IFA) today applauded signature of California Senate Bill 919, bipartisan legislation extending disclosure requirements to third-party franchise sellers such as brokers, broker networks, and franchise sales organizations.

The International Franchise Association (IFA) and Franchise Update Media today announced an agreement to expand on the groups™ years of working together to deliver on events, content, and education to better serve the entire franchising community while carrying out each organization™s mission. IFA and Franchise Update Media intend to join under a single entity, while maintaining each organization™s individual brands, events, advisory groups, and organizational structures. 

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.

The International Franchise Association (IFA) today released its third Annual Franchisee Survey, in partnership with FRANdata, showing the impacts of continued economic challenges on franchised businesses. The survey of over 1,400 franchise owners shows increasing economic uncertainty in the face of increased prices and slowing consumer demand, resulting in lower business earnings in a majority of businesses. The survey also measured franchisee concerns with tax policy, ahead of the expiration of many Tax Cuts and Jobs Act (TCJA) provisions next year.

The momentous decision in Massachusetts will have a far-reaching impact toward protecting franchisees™ roles as entrepreneurs and business owners, said Michael Layman, IFA senior vice president of government relations and public affairs. Classifying franchisees as employees, as the plaintiffs unsuccessfully argued, would have undermined franchisee independence and led to an untenable situation for franchisors and franchisees alike, and undoubtedly created confusion, uncertainty, and an increase in litigation in the Commonwealth. We are pleased that common sense prevailed in the Bay State and hope that its precedent impacts the broader independent contractor debate in Washington, D.C. and state capitals across this country.

IFA today applauded passage of California Senate Bill 919, bipartisan legislation extending disclosure requirements to third-party franchise sellers such as brokers, broker networks, and franchise sales organizations. The 75-0 Assembly vote follows months of IFA advocacy, with the support of the Coalition of Franchisee Associations (CFA) and American Association of Franchisees & Dealers (AAFD), promoting the legislation to strengthen the foundation on which the franchise relationship begins by improving information available to prospective franchisees. The bill passed the Senate in May and now heads to Gov. Gavin Newsom™s desk for signature.