International Franchise Association

for roughly ten years. Haller firmly believes that labor unions are targeting franchisors as it would help increase their market share of workers in the private sector that they represent. Franchises form the backbone of the US economy. Within the private sector, franchises provide over 8 million jobs which are associated with 800,000 franchise businesses. “In 2023, franchise businesses are looking to grow by 2% in new business and 3% in new jobs, led by the restaurant industry, followed by the commercial and residential industries,” says Haller. Marketing and promotion are important to IFA. Currently, a marketing and communications team promotes policies to elected officials to ensure they hear what’s happening in the franchise landscape. It also ensures that individuals hear about the different conferences and events hosted by the organization, as well as partners who collaborate with IFA. This focus on marketing and communication is also important for the franchise model, as franchisees While the business model is unique, it’s not suited to everyone, so both parties must be informed upfront. Without this clarity, many potentially interested franchisees will leave the opportunity. Regarding accountability, the franchise is the overarching business owner of the brand. They are separately incorporated, and who the government will refer to if laws are abided by. In the franchise agreement, the franchisee has to follow federal, state, and local laws. “In states like California, particularly in the area of labor policy, there’s been an attempt to hold the franchise brands (the franchisor) jointly liable for franchisee infringements regarding labor and working conditions. “If this happens, it will eviscerate the whole rationale for the business model and isn’t fair. Right now, there’s a push from organized labor to make the bigger party in the franchise agreement pay for the infringements of the smaller party,” says Haller. According to IFA, this has been an ongoing dispute 5 BUSINESS VIEW MAGAZINE VOLUME 10, ISSUE 06 INTERNAT IONAL FRANCHISING ASSOCIAT ION