Franchising Lessons from RNC: 4 Key Takeaways

Money Bizwiz Team
5 Min Read

As the Republican National Convention unfolded just hours after an assassination attempt on a presidential candidate, the significance of the event was felt on a heightened level this year. In my capacity as President and CEO of the International Franchise Association (IFA), I had the privilege of attending a policy roundtable in Milwaukee titled “Franchising, the American Dream.” Joining me were U.S. Representative Kevin Hern (R-OK), co-chair of the congressional franchise caucus, McDonald’s franchisee Jimmy Williams, and hotelier Jyoti Sarolia.

Matt Haller and Jyoti Sarolia Credit: Matt Haller

In our non-partisan role, IFA does not take sides in presidential campaigns. We are committed to working with any individual from any party who advocates for our priorities and supports our small business owners in the franchise industry. This commitment led us to partner with POLITICO and CNN at the convention, where together with Milwaukee-based Batteries+, we showcased the economic benefits of franchising through a brand activation. Over four days, we distributed wireless battery chargers to over a thousand attendees, raising awareness about franchising’s positive impact with a QR-code link to IFA’s Open for Opportunity campaign.

Related: Check out the 2024 Franchise 500 Ranking

Political conventions never fail to ignite excitement, and this year was no exception, especially after the subdued events of 2020 due to COVID-19. The buzz and energy were palpable, and in my various conversations with stakeholders, I identified four key commonalities that emerged.

1. Unions and Franchising: Finding Common Ground

The presence of Sean O’Brien, President of the International Brotherhood of Teamsters, as a speaker at the RNC was notable, marking a historic moment for the convention. While the GOP may not be accustomed to such union representation, O’Brien’s speech highlighted the intersecting interests between unions and the franchise community. Franchising’s story is compelling, with nearly 9 million direct jobs created, all within the U.S., and offering higher wages, benefits, and job security compared to non-franchised businesses.

It’s essential to dispel the misconception that unions and the franchise model are inherently incompatible. The focus should be on creating good American jobs, a goal that both sides can support, even as they may diverge on specific policy issues.

2. Franchising: Bridging Party Divides

The changing landscape of political alignments presents a unique opportunity for franchising to expand its influence. Franchising boasts higher rates of ownership among women, minorities, and veterans, showcasing its inclusivity and role in empowering underrepresented groups. As franchise ownership becomes more diverse, it can play a pivotal role in reshaping political affiliations.

Paul Calkins (IFA), House Speaker Mike Johnson and Matt Haller (IFA) Credit: Matt Haller

Clement Troutman, a veteran and franchisee, emphasized the importance of franchising in supporting black entrepreneurs facing significant challenges. Franchising can be a catalyst for empowerment, provided the right business environment is established through collaborative policymaking.

3. J.D. Vance: A Franchising Ally

Senator J.D. Vance’s alignment with franchising on key issues, despite some divergence from traditional Republican stances, underscores the broader support for franchising across party lines. His advocacy for franchising during crucial legislative moments signals a growing recognition of the industry’s importance and potential for economic growth.

4. The Presidential Impact on Franchising

The upcoming presidential election will have far-reaching implications for franchising, as policymakers determine the economic and regulatory landscape for small businesses. Evaluating past policies and candidates’ visions for job creation is crucial in assessing the future environment for franchises.

Related: Decoding the Massive Impact of the NLRB’s Joint Employer Rule

Key issues, such as tax reform and regulatory updates, will influence the franchising sector’s growth and sustainability. The next president’s decisions on tax laws, agency appointments, and regulatory frameworks will shape the trajectory of franchising in the years to come. It is imperative for franchisors, franchisees, and industry advocates to engage with policymakers and ensure the industry’s voice is heard.

As the franchise community navigates the evolving political landscape, our commitment to promoting the interests of franchising remains steadfast. By championing the economic contributions and diverse opportunities offered by franchising, we aim to secure a thriving future for the industry and its stakeholders.

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