IFA Statement on Assembly Passage of New Jersey Anti-Hospitality Bill
IFA Statement on Assembly Passage of New Jersey Anti-Hospitality Bill
TRENTON – The International Franchise Association (IFA) today released the following statement after the New Jersey Assembly passed A-1958, legislation that would damage hospitality franchises in the state. A-1958 would insert the state government into private franchise contracts, promote litigation, and diminish brand standards – the foundation of the franchise model.
“Today New Jersey legislators voted against locally owned businesses in favor of government overreach, which will undoubtedly harm the state’s hospitality industry,” said IFA Vice President of State Government Relations Jeff Hanscom. “A-1958 undermines franchised businesses in the hospitality sector, making it more difficult to do business and serve their guests at a time when they are still trying to recover from the worst effects of the pandemic. We urge the Senate to stand with New Jersey businesses and oppose this legislation.”
IFA in March sent a letter to the New Jersey Assembly Commerce and Economic Development Committee in opposition to the legislation. Tom Baber, an IHOP and Money Mailer franchisee based in New Jersey, also testified on behalf of IFA before the committee, saying, “A-1958 has far-reaching and harmful ramifications for hospitality franchisors, franchisees, and the New Jersey economy. But more than that, the legislation is a fundamental dismantling of the franchise business model by entirely removing any ability for franchise brands to enforce brand standards.”
There are currently 19,000 franchise establishments in New Jersey, which generate over $20 billion in economic output and employ over 203,000 New Jersey residents. The legislation stands to not only harm New Jersey’s existing hospitality franchises, but also expand to impact the entire franchise model in New Jersey and any future expansion.
Earlier this year, IFA’s Open for Opportunity Roadshow visited New Jersey, hosting local franchise business owners and elected officials for discussions on the ways the franchise industry will provide critical support to the state for the 2026 World Cup. This legislation stands to undermine the businesses that will make this event a success, “only hurt[ing] New Jersey’s economy and franchising in the state,” as the letter reads.
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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.