Franchisee Testifies Before U.S. House on Reducing Regulatory Burdens on Small Businesses

September 13, 2023

California Jimmy John’s Franchisee James Chung testifies on preserving interest deductibility, the harms of joint employer, and SBA Lending

WASHINGTON – Testifying before the U.S. House Small Business Subcommittee on Economic Growth, Tax, and Capital Access, Jimmy John’s Franchisee James Chung shared the impact of franchising on local economies and communities and the ways Congress can reduce regulatory burdens to support small business growth.

Chung said, “I have experienced firsthand the remarkable impact that franchised businesses can have on local economies and communities, including their ability to create jobs, develop a skilled workforce, and foster economic growth…The current political climate is making it too difficult, litigious, and expensive to operate. People expect a return on the investment of their time and money - when the investment no longer matches the return, people move on to other things. In this case, that means people stop establishing businesses or innovating which, for me, is what the American Dream is all about.”

In a hearing called, “Enabling Success: Examining the Competitive Landscape for Small Businesses,” Chung testified on behalf of the International Franchise Association (IFA) and the entire franchising community.

He highlighted the need to permanently preserve the earnings before interest, tax, depreciation, and amortization (EBITDA) standard and ensure that the tax code does not penalize job-creating investments. In addition, he highlighted the damage the National Labor Relations Board’s (NLRB)’s forthcoming joint employer rule would bring to franchising – wiping away the “equity that I have spent my life and career building in my businesses and ultimately makes me a middle manager of my brand.” Lastly, Chung mentioned the importance of certainty in SBA lending programs for franchise owners, following the recent changes to affiliation rules and the elimination of the Franchise Directory.

View his full testimony here

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About The International Franchise Association:

Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) 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 approximately 790,492 franchise establishments that support nearly 8.4 million direct jobs, $825.4 billion of economic output for the U.S. economy, and almost 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.

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