IFA Expands Its Reach Through State Retail, Restaurant and Lodging Associations

May 09, 2016

IFA’s state association allies remain strong frontlines of defense and offense for the franchise business model

By Dean Heyl, CFE, Jeff Hanscom and Nicholas Johns

The fact that the United States has 50 independent state governments seems like a simple concept. But what isn’t simple is the staggering amount of laws generated every year by each of these states’ legislative branches. On average, over a quarter-million separate pieces of legislation are introduced each year at the state level. The sheer scale of the task means International Franchise Association staff simply can’t be everywhere all of the time. And while electronic legislative tracking services do a good job of notifying us about bills, nothing beats having people on the ground and walking the halls of state capitols.

That is the main value of IFA’s membership in state retail, restaurant, and lodging associations. Many times they are IFA’s “canaries in the coal mines,” by letting us know of problems before they become legislation. These state associations are also the building blocks to form effective coalitions, providing a local voice in addition to IFA’s national advocacy efforts.

Overall, IFA holds memberships in various state associations in approximately three-quarters of the states, while maintaining relationships with the remaining quarter in order to coordinate with them if or when situations arise. With IFA members covering more than 300 different business lines, more often than not, there is significant overlap among membership lists between IFA and the state hotel, restaurant, and retail associations.

In addition, IFA often works closely with the state affiliates of Washington, D.C.-based groups such as the National Federal of Independent Business or the U.S. Chamber of Commerce, both of which maintain a network of state associations.

Proactive advocacy support

Not only do these associations provide an excellent first line of defense and early warning network for legislative and regulatory threats, they also have proved incredibly useful in proactive advocacy projects, such as IFA’s joint-employer advocacy efforts, which at the time of printing, have yielded seven states enacting laws clarifying that franchisors are not the employers of franchisees, nor are they the employers of franchisees’ employees. For example, Jeff Hanscom, who heads IFA’s state government relations effort, worked closely with the Indiana Restaurant Association on Indiana HEA 1218 (previously HB 1218), a proactive joint-employer bill signed into law by Gov. Mike Pence earlier this year.

“With the help of IFA, we were able to strengthen the voice of the franchise industry and provide a national perspective to the issue at hand,” said Patrick Tamm, president and CEO of the Indiana Restaurant and Lodging Association. “IFA’s knowledge and experience from across the nation assisted in our efforts to get HEA 1218 passed out of both chambers and signed by the governor.”

IFA’s larger footprint

When time is of the essence, instead of IFA’s staff going in “cold” before state legislatures, these associations can say, “IFA is one of us.” Moreover, it is very helpful to have the associations make recommendations on the key legislators to call to resolve an issue, and many times they will make the introductions.

This two-way street between IFA and the state associations to protect Main Street businesses is summed up well by the Pennsylvania Restaurant and Lodging Association’s Director of Government Affairs Melissa Bova, who said: “PRLA is proud to call the IFA one of our partners as it pertains to our legislative initiatives. Our industry is only as strong as those who are engaged, and the IFA gives us a larger footprint to educate legislators and get ahead of legislation before it gets ahead of us.”

In 2016, IFA’s membership in several state retail, restaurant, and lodging associations has yielded amazing results in state capitols across the nation. In 2017, IFA expects potentially harmful state franchise legislation, but the organization expects to be on offense in no less than a dozen states as well.

IFA’s state association allies will remain the strong frontlines of defense and offense for the franchise business model in their respective states. After all, even the best quarterbacks will fail without a solid offensive line protecting their blind side.

Dean Heyl, CFE, is vice president of State Government Relations and Tax Counsel for IFA. Jeff Hanscom is director of State Government Relations and Public Policy, and Nicholas Johns is coordinator of Government Relations and Public Policy. Find them at fransocial.franchise.org.