Government Relations
Our Mission
The mission of IFA’s Government Relations Department is to preserve and enhance the legislative and regulatory climate for the growth of franchising worldwide by providing services and representation that only IFA can achieve. The Department achieves this by monitoring legislative and regulatory activity, conducting lobbying and grassroots campaigns, participating in national and local coalitions, creating forums and educational tools for experts in the franchising community, and promoting positive relations between franchisors, franchisees, and elected and appointed government officials and employees.
HOW BIG IS FRANCHISING?
Learn more about our New The Economic Impact of Franchised Businesses in the U.S. at www.buildingopportunity.comFranchise Appreciation Day is Approaching!!!
Find out more about IFA's 9th Annual Franchise Appreciation Day and how to register by clicking here.
FTC Compliance Guide Now Available
The FTC Compliance Guide is intended to help franchisors comply with the Federal Trade Commission’s amended Franchise Rule. Since July 1, 2007, franchisors could comply with the FTC’s disclosure requirements by using any one of the following formats: (1) the original Franchise Rule; (2) the Uniform Franchise Offering Circular (“UFOC”); or (3) the amended Franchise Rule.
Once a franchisor selects a disclosure format, it must use that format and no other. As of July 1, 2008, however, all franchisors must use only the amended Franchise Rule. This Guide does not modify the amended Rule. It explains the requirements of the amended Rule.Moreover, it does not exhaustively cover every requirement contained in the amended Rule, but focuses on amended Rule provisions that depart from the familiar UFOC Guidelines. This Guide also includes sample disclosures that illustrate the new provisions and will be useful in preparing compliant disclosures.
FTC Downloads
Compliance Guide: http://www.ftc.gov/bcp/edu/pubs/business/franchise/bus70.pdf
Rule FAQs: http://www.ftc.gov/bcp/franchise/amended-rule-faqs.shtm
Franchise Rule Opinions: http://www.ftc.gov/bcp/franchise/netadopin.shtm
ISSUES & ACTION: What IFA is Lobbying On Right Now
IFA Comments on ADA Title III Proposed Regulations - View the comments. Aug 18, 2008
IFA Files Friend of the Court Brief in Georgia - View the brief and view our press release. July 31, 2008
Los Angeles QSR Moratorium is Arbitrary and Unfair On Monday, July 28, IFA voiced its strong opposition to a Los Angeles City Council proposal to place a one-year moratorium on quick service restaurants in certain parts of the city. The measure would give the Director of Planning the authority to define “fast food establishment” for the purposes of the ordinance and would apply to the following areas: West Adams, Baldwin Hills, Leimert, South Los Angeles, and Southeast Los Angeles.
H-2B Workforce Coalition Comments on DOL Proposal - July 9, 2008
IFA Urges House Judiciary Committee to Provide Relief from Aggressive State Tax Nexus Claims - In a letter to the Chair and Ranking Member of the Judiciary Subcommittee on Commercial and Administrative Law, IFA President and CEO Matt Shay illustrated why Congress must pass the Business Activity Tax Simplification Act to bring clarity to state tax laws. The current environment is especially burdensome to small franchisors and threatens the ability to provide sufficient support to franchisees domiciled in other states. June 19, 2008
IFA Expresses Concern on New Jersey Franchise Bill – Legislation would alter the definition of “place of business” for many mobile location franchises. Affected members should reach out to Assemblyman Joe Cryan to express concern. Please contact Troy Flanagan (tflanagan@franchise.org) if you have any questions. June 11, 2008
IFA Seeks Clarification of Louisiana Independent Contractor Bill – In a letter to bill sponsor state Rep. Patricia Smith, IFA points out potential effect on franchising and asks for the bill to be refocused so that small franchised businesses in the state are not harmed.
IFA Vice President of Government Relations Statement Regarding Committee Passage of Fashion Industry Immigration Bill- May 14, 2008
IFA Voices Support for Rhode Island Bills to Restore Sensible Franchise Regulation to the State – In response to the overly broad Fair Dealership Act of 2007, Rhode Island state Sen. Daniel Connors (D) and House Majority Leader Gordon Fox (D) have filed SB 2592 and HB 8150, respectively, to undo many of the onerous provisions of the current law. IFA sent letters to the bills’ sponsors (Connors and Fox) as well as key legislative leaders voicing strong support for the proposals. Concerned IFA members are encouraged to contact legislative leaders to support these needed legislative reforms. April 30, 2008
IFA Comments on No-Match Supplemental Proposed Rulemaking - April 25,2008
Mass. Governor Asked to Veto Harmful Wage Dispute Legislation – Bill would categorize all wage disputes as “evil” actions by employers and levy damagingly large fines. Gov. Deval Patrick vetoed an earlier version of the bill and IFA is asking Patrick to again strike it down. April 11, 2008
Sensible Menu Labeling Proposal in Calif. Supported by IFA – In a letter to Calif. Assembly Health Committee Chairman Mervyn Dymally (D-Compton), IFA urged support for this flexible approach to providing consumers with nutritional information at chain restaurants. The bill provides multiple ways in which restaurants can convey this information. April 2, 2008
IFA Urges Court to Strike Down Costly Employer Health Mandate – Franchised small businesses would face a devastating patchwork of local mandates if a San Francisco mandated health plan is allowed to stand. The friend of the court brief was filed by IFA, along with the Society for Human Resource Management and the National Association of Manufacturers. To view IFA’s press release regarding the brief, please click here March 28, 2008
Franchise Business Leader and Other Small Businesses Defend Bill Clarifying State Taxing Scheme – In a letter to U.S. House Judiciary Committee Chairman John Conyers, Congressional witnesses who testified before the Small Business Committee last month, including Firehouse Subs Chief Financial Officer & Principal Steven Joost, reiterated their support for legislation which brings clarity to the issue of economic nexus. In recent years state tax officials have stretched the definition of “physical presence” in order to increase their tax bases. March 26, 2008
Information on Title III of the Americans with Disabilities Act– March 24, 2008
Navigating the Immigration Debate: A Guide for State & Local Policymakers and Advocates- February 27, 2008
Congress Hears from Franchising on Burdensome Business Tax Issue – Speaking on behalf of the IFA, Firehouse Restaurant Group Chief Financial Officer Stephen Joost testified February 14 before the U.S. House of Representatives Small Business Committee on the negative effects of non-resident states attempting to levy certain taxes on businesses without nexus. Although the committee took no official action on business activity taxes during the hearing, further discussions in Congress are expected this year to mitigate their effect on small businesses. Click here to view Mr. Joost’s testimony and here to read a transcript of the hearing.
IFA Files Amicus Brief Meyers V. Cold Stone - February 7, 2008
IFA Expresses Opposition to Florida Dispute Venue Bills – In letters to the sponsors, as well as in-person meetings in Tallahassee, IFA outlined the negative repercussions of the recently filed legislation requiring Florida to be the venue for certain actions brought by franchisors against franchisees. The bills not only invade the right of private contracts but threaten Florida’s business-friendly reputation. IFA is working with members and allied industry groups to oppose the measures. Click here to learn more about these bills and why they are bad for franchising. February 5, 2008
IFA Urges Senate Support of Bipartisan Economic Stimulus Package – Small business provisions of the package will foster business investment and job growth among small franchised businesses. Also, returning money to consumers will spur a demand for goods and services provided by franchised businesses. Contact your Senators to voice your support for this measure today! Visit IFA’s grassroots site at www.franchisingvotes.com and click on Take Action to make your voice heard. January 29, 2008
IFA Seeks Clarity in Massachusetts Independent Contractor Law – Proposed Attorney General Advisory fails to protect franchising as a legitimate business strategy in the commonwealth. To view IFA’s comments, click here January 25, 2008
South Dakota Franchise Legislation Will Harmonize State and Federal Regulations – In a Jan. 8th letter, IFA voiced its strong support for Senate Bill 52 (Knudson), which addresses key differences between the new FTC Franchise Rule and state regulations. When enacted, this bill will be a model for other states in franchise oversight. To review SB 52, please use the following link: http://legis.state.sd.us/sessions/2008/Bills/SB52P.pdf January 8, 2008
Congresswoman Linda Sanchez Urged to Support Business Activity Tax Nexus Legislation A group of California businesses and trade associations, including the IFA, urged Rep. Sanchez (D-CA) to support a federal solution to the problem of the business active tax nexus. The group is seeking legislation that would ensure fairness, clarity and consistency when it comes to income tax on a business that has no physical presence in a jurisdiction. December 13, 2007
EWIC voices concern over current immigration legislation Lead by the EWIC a group of trade associations, including IFA voiced strong concerns over the Secure America through Verification and Enforcement Act (“SAVE” Act) to House and Senate leadership. Calling this bill inadequate, EWIC is advocating sensible reform of immigration laws to better serve the economic and national security needs of the United States. December 4, 2007
IFA Files Amicus Curiae in Georgia Court of Appeals on a case involving an in-term non-compete restriction in an Atlanta Bread Company franchise agreement. At the trial level, the court applied a very strict standard to in-term convenants and ruled that the ABC non-compete was unenforceable. IFA "has a keen interest in this case because the trial court’s holding—that in-term restrictions in a franchise agreement are subject to the same level of scrutiny and reasonableness analysis as restrictions on post-term activity—if allowed to remain as is, potentially renders unenforceable the in-term restrictive covenants in the vast majority of franchise contracts for businesses operated in this state, including many of the most well-known and respected franchises in the world." December 3, 2007
Revised Employment Eligibility Verification Form I-9 Now Available: On November 26, the United States Citizenship and Immigration Services (USCIS) of the Department of Homeland Security (DHS) published in the Federal Register, notice of the introduction of a revised Employment Eligibility Verification Form I-9 and a new handbook for employers. While an I-9 form must be completed by all employers for each employee hired in the U.S., USCIS is encouraging employers to begin using the form immediately. Usage of the new I-9 form will become mandatory for all employers to complete within three days of hire within 30 days of the published notice, or by Christmas 2007. The form is not a redesign but only an amendment. Essentially, the revision removes five documents that employers may accept from newly hired employees to prove work eligibility and identity, because they do not have features that detect counterfeiting, tampering and fraud. Please note that there was one addition to the list: the most recent version of Form I-766, Employment Authorization Document, is now listed as an acceptable List A document. In its announcement of the revised Form I-9, the USCIS also reminds employers that new hires are not required to provide their Social Security Numbers in Section 1 of the Form I-9, unless their employer is a member of the E-Verify program.Federal Government Concedes to IFA and other Plaintiffs in "No Match" Case
In October, a U.S. District Court blocked the federal government from implementing its new Final Rule requiring increased employer action in response to “no match” letters. In August, the IFA joined a lawsuit against the federal government to stop the mailing of 140,000 “no match” letters to America’s employers. IFA joined the AFL-CIO, the U.S. Chamber of Commerce and others in the suit against the Department of Homeland Security (DHS) after the agency published a new rule that increases employer burdens and penalties in responding to DHS “no match” letters. The federal court issued the preliminary injunction against DHS after conducting a hearing on the lawsuit in October. Most recently, on November 23, the federal government filed a motion with the Federal District Court in San Francisco requesting that the case be stayed on it's merits -- essentially admitting that the rule is flawed and an appeal or a hearing on the case's merits would serve no purpose.
Published by DHS, the Rule provided strict guidance for employers when they receive notice from the Social Security Administration that an employee’s name and social security number do not match (i.e. a “no match” letter). Failure to clear up a discrepancy would require employers to fire an employee or expose employers to serious charges of immigration law violations. Employers often receive “no match” letters for undocumented workers, because these workers frequently use fake social security numbers. “No matches,” however, also frequently occur for very legitimate reasons, such as clerical errors, or failure to register a change of name after marriage. Under the no-match regulation, employers would be required to act promptly upon receipt of a no-match notice. While the rule provided for a safe harbor procedure for employers, the new requirements would have greatly expanded legal uncertainty for employers. Employers would also need to shoulder the cost of compliance for training and new paperwork obligations related to inquiries from federal agencies. Employers would suffer lost employee hours because employees will need to take time off to try to rectify the no-match discrepancy. IFA is critical of the rule, which also contains other notable immigration reforms including a proposed increase in civil fines by approximately 25 percent, the expansion of criminal investigations and the expansion of the E-Verify program to all federal government contractors.
**IFA/Plaintiffs Reply to DHS "No Match" Response, September 26, 2007
Department of Homeland Security Issues Final "No Match" Rule, August 15, 2007
CALCULATOR -- The Alternative Minimum Tax (AMT) Versus the New Surtax:Calculate the affects of the AMT repeal versus the new surtax on you and your family. Which is better for you? Let us know. Email us at gr@franchise.org. We are lobbying on this issue and want to best represent IFA members.
"Mother of All Tax Bills" Introduced in Late October: See the Draft Summary of this Major Tax Bill by Rep. Charlie Rangel (D-NY), Chairman of the House Ways and Means Committee
The Arbitration Fairness Act, H.R. 3010/S. 1782 Will Change the Way You Do Business: This bill would render as unenforceable all predispute binding arbitration clauses in consumer, employment and franchise disputes. Read a Summary of the legislation, Key Talking Points about the bill, and IFA's letter to the key committee leaders.
NEW U.S. Department of Labor Minimum Wage and Compliance Poster -- NOW AVAILABLE
The revised federal minimum wage poster reflects the recently enacted federal minimum wage increase. The first minimum wage increase is to $5.85 per hour, effective July 24, 2007, with subsequent increases to $6.55 on July 24, 2008, and $7.25 on July 24, 2009. The poster is now available and can be accessed electronically for viewing, downloading, and posting. The posting requirements have not changed: Any employer that has employees subject to the Fair Labor Standard Act’s minimum wage provisions is required to post, and keep posted, a notice explaining the FLSA. The poster must be in a conspicuous place in the employer's establishments so as to enable employees to read it.
Franchised and service sector businesses are increasingly the targets of union organizing due to their strong employment growth and low union representation percentages. Learn more about how the “Card Check” legislation would affect franchising. For More About Threats to Employer and Employee Choice, visit www.myprivateballot.com and to Take Action see www.franchisingvotes.com (click Take Action)
MORE IFA ISSUES
