Franchising World, January 2007

 By Matthew Shay

Ringing in the New Year is a cause for celebration and a time for change.  It’s also a time to reflect on last year’s course of events and resolve to make improvements.  This New Year also signals a shift in the political climate after a November election that saw lopsided results. 

For the first time in 12 years, the Democratic Party now holds the majority of seats in the U.S. House of Representatives and the Senate.  What will this change mean for the IFA and for franchising?  For starters, it opens the door to an opportunity to build relationships with new members of Congress on both sides of the aisle and on both sides of Capitol Hill. 

It’s also an opportunity to remind all members of Congress, and their staffs, that franchising is bipartisan.  Regardless of political affiliation, it’s still essential to educate those on Capitol Hill—Republicans and Democrats alike—who we are as a franchising community and why franchising is an integral part not only of the U.S. economy but of our local communities as well. 

Introducing new members of Congress and their staffs (and reminding incumbent lawmakers and their staffs) of the reality that franchising is an integral component of communities across the country provides the opportunity to reaffirm the strength of franchising.  It also strengthens the credibility of franchising as a strategy for business expansion and a means of economic empowerment.  Congress needs to be reminded--not just here in Washington but at home in their districts--that our lives are touched daily by franchised businesses and the entrepreneurs and employees who make franchised businesses work.  

We are committed to work with newly-elected members of both parties to maintain our presence on Capitol Hill and more importantly communicate the issues that impact franchised businesses.  Our tactics may change to meet the changes on Capitol Hill, but our objectives are clear.  We will work to strengthen franchisor and franchisee relationships, prevent unreasonable legislative and regulatory proposals and continue to promote franchising as one of the most efficient methods for the expansion of a business and economic development. 

When the Congress last changed control back in 1994, the IFA was at a markedly different point.  Our revenue has nearly tripled since then, we count our members in the thousands, rather than the hundreds, and we’ve fully integrated franchisees into the IFA.  The franchising sector alone had a different look.  Since then, the critical mass of IFA members, diversity of franchising concepts and number of franchising systems have experienced significant growth and development.  

With that in mind, it’s apparent that the notion of change is not a foreign one to franchising.  Change is not always a bad thing.  As you’ve learned to adapt and mold your techniques when it comes to elements such as marketing and lead generation, so, too, will franchising learn to cope with any regulatory changes. In the coming years, franchising is sure to evolve to meet the rapidly-changing demands of the global marketplace.  Nonetheless, IFA’s presence, mission, and resources will remain steadfast and constant. 

Franchise Appreciation Day, which has occurred every September for the past seven years will again take place in 2007 and be more important now than ever.  Attendees from years past know the effectiveness and benefit of this grassroots lobbying event.  

I encourage those who haven’t participated in Franchise Appreciation Day to consider the value of direct contact with those who have the power to craft, uphold, and mend legislation.  These legislators need to hear from all segments of the franchising community be they franchisees, franchisors or suppliers.  It’s imperative that we make sure lawmakers, regulators and policy makers at all levels understand the economic power of franchising. 

A strong combination of the association’s efforts and your dedication will ensure that franchising continues to flourish uninhibited by changes in the political and regulatory environment from this New Year and far into the future.