20 03, 2020

Franchise group calls for $300 billion in federal assistance

2020-03-20T17:54:14+00:00March 20th, 2020|Franchise News|1 Comment

The International Franchise Association (IFA) is asking congressional leadership for the creation of a $300 billion fund to provide liquidity to franchises struggling through the coronavirus pandemic.

Up to 393,000 franchise jobs could be lost from a 90-day shutdown, the IFA warned. The U.S. franchising community is comprised of more than 733,000 establishments that employ over 7 million individuals and contribute $674.4 billion to the U.S. economy.

The IFA also found that approximately 20,000 to 30,000 franchise businesses will lose liquidity in the next 45 days if immediate relief is not provided.

It is calling for the creation of a Treasury Department-administered Small Business Workforce Stabilization Fund and Small Business Stabilization Account to provide immediate support to employers that keep employees on payroll and streamlined access to capital so businesses can grow when the epidemic passes.

“IFA members include franchise companies in over 300 different business format categories, from hotels to restaurants, hair salons to in-home health […]

19 09, 2019

California’s AB-5 Signed into Law

2019-09-19T18:20:16+00:00September 19th, 2019|Franchise News|Comments Off on California’s AB-5 Signed into Law

Dear IFA members,

On September 18, 2019, California Governor Gavin Newsom signed into law Assembly Bill 5, or AB-5, which the state’s legislature had passed on September 11. Through its codification and wide-ranging application of the so-called ABC Test, AB-5 could potentially turn franchising – where an independent owner licenses a brand name and an operating system from an established brand – into a corporate model, where independent owners and their employees are effectively absorbed into a single company.

With this bill’s passage, California has upended an entire business model and thrown thousands of small business owners’ livelihoods into flux. AB-5’s overly broad language makes franchising’s future uncertain in California. The legislation takes effect on January 1, 2020.

How Does This Affect My Business?

Unfortunately, this law leaves many franchise businesses with more questions than answers. Compounded by the variances in how franchise systems are structured, and the untested […]