Contact: Jenna Weisbord, 310-995-0839
(WASHINGTON, MARCH 18) – The International Franchise Association (IFA) today released the following statement calling for swift enactment of the United States – Mexico – Canada Agreement, or USMCA.
The USMCA is a wide-ranging international trade agreement between the United States, Canada, and Mexico that would replace the North American Free Trade Agreement (NAFTA). It has been agreed to by the three countries but not ratified in the U.S. Congress.
“America’s 733,000 franchise businesses are in every state and Congressional district in the country. Thirty-eight percent of the locations of the 200 largest brands in the U.S. are already outside our borders, adding four international units for each unit they opened domestically. Importantly, U.S. brands opening in Canada and Mexico create jobs back home and generate revenue for the U.S. economy thanks to the franchise model’s royalty structure. And while U.S. locations are locally-owned and operated, their reach is international, helping drive international visitors to the U.S. to recognizable brands. From supply chain management to planned expansions, stability and an even international playing field by virtue of the USMCA will help American franchise businesses thrive,” said IFA Senior Vice President for Government Relations and Public Affairs Matt Haller. “IFA hopes that Congress will move swiftly to enact this important agreement to help American businesses.”
Franchise businesses employ 7.6 million Americans and contribute more than $400 billion to U.S. GDP. According to FRANdata, a market research firm, 484 American brands have franchise units operating in Canada. 136 have franchise units operating in Mexico.
Celebrating 58 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 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 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.