December 18, 2024

IFA Sinks Another Franchising Foe

On December 11, IFA advocacy powered a bipartisan rejection in the U.S. Senate of the nomination of Lauren McFerran, chair of the National Labor Relations Board (NLRB), for a third five-year term.

Dig deeper: As the architect of the anti-franchising NLRB joint employer rule, McFerran’s defeat was a major victory for the franchise community. She joined Julie Su (U.S. Secretary of Labor) and David Weil (Administrator of the Department’s Wage and Hour Division) as other opponents of franchising whose confirmations were stopped by IFA advocacy during this administration.

What’s next: The IFA Law Center defeated the NLRB joint employer rule in federal court earlier this year, and now looks forward to working with the incoming Trump Administration to restore a common sense, pro-franchise perspective at the NLRB.

Government Funding Delays CTA Requirements

As Congress hurriedly works to fund the government before this week’s December 20 deadline, IFA applauded the proposed continuing resolution (CR) released on December 17 that includes a one-year delay of the Corporate Transparency Act’s (CTA) reporting requirements.

What this means: Under the IFA-opposed CTA, nearly all franchise businesses – especially those that existed prior to 2024 – were slated to be required to file a Beneficial Ownership Information (BOI) report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) every year. If Congress passes this funding resolution before week’s end, the one-year delay will provide welcome relief. 

What’s next: IFA had long opposed the CTA that became law in 2021, most recently sending a September letter urging Congress to support a delay on the CTA’s year-end compliance deadline. 

Lina Khan Tenure Ends at FTC

After President-elect Donald Trump announced his intention to nominate Andrew Ferguson to serve as chair of the Federal Trade Commission (FTC) and Mark R. Meador to serve as commissioner, IFA heralded a new approach at the FTC, while pledging to work constructively with the Commission to modernize the Franchise Rule to promote responsible franchising practices.

Our thought bubble: IFA stands ready to support the FTC in modernizing disclosure requirements under the Franchise Rule to make the franchise sales process even more fair, accessible and successful for franchisors and franchisees.

The big picture: In May 2024, IFA released Responsible Franchising principles to serve as a roadmap for improved disclosure for franchisors, franchisees, and suppliers – ultimately seeking to build stronger franchise relationships and provide prospective franchisees with more robust information before they make an investment decision. 

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FTC Scales Back "Junk Fee" Rule

In other FTC news, yesterday, the Commission released its long-awaited rule on Unfair and Deceptive Fees - commonly known as the “Junk Fee” Rule. The final version was markedly scaled back from earlier iterations - another direct result of IFA advocacy.

Zoom out: As originally written, the overly broad proposed rule would cause consumer confusion and hurt franchised small businesses in the restaurant, retail, and health and fitness industries, among others. 

What happened: In February 2024, IFA submitted comments to the FTC and testified before an administrative law judge to make known its concerns about the FTC’s failure to demonstrate that itemized pricing in certain industries common in franchising, is inherently deceptive and unfair and can hurt consumers and small businesses alike.

IFA Previews 2025 State Legislative Year

Last week, IFA Senior Vice President of State Government Relations Jeff Hanscom and Director of State Government Relations Matthew Kagel hosted a State Legislative Look-Ahead webinar to provide a high-level overview of anticipated legislative developments in key states next year.

Why it matters: 2025 could prove to be another challenging year in the states for franchising as power may shift from Republican-controlled D.C. and into the "laboratories of democracy." Arizona lobbyist Bob Charles, California lobbyist Randy Pollack, Georgia lobbyist Brad Alexander, and New Jersey lobbyist Eric Orlando previewed the respective landscape in each state.

Dig Deeper: See Franchise Times’ coverage of the top state and federal issues at play following an interview with IFA Chief Advocacy Officer Michael Layman on the year ahead. And, listen to IFA President and CEO Matt Haller discuss recent wins and IFA’s focus next year on the latest episode of IFA’s Franchise Voice podcast. 

IFA to Headline Pre-Inaugural Media Event

Ahead of the presidential inauguration, IFA will host an event on January 14 in Washington, D.C. setting the stage for the impact of the Trump Administration for the franchising community. 

Why it matters: From tax policy to the future of joint employer, the stakes are high for franchise small businesses in 2025, and this event will bring together top lawmakers, journalists, and policy influencers for a conversation on the pressing issues of the day and the important role that franchising plays. You can register for the event here.

Zoom out: IFA President and CEO Matt Haller participated in a similar event last week with Congressional Franchise Caucus co-chair Rep. Beth Van Duyne. Watch his remarks below.

January 7 at 1:00 pm ET | Lunch N Learn: Power of Human Connection in the Age of AI | REGISTER

January 14 at 9:00 am ET | IFA Hosts Semafor's Principals LIVE Washington, DC | REGISTER

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February 10 - 13, 2025 | 2025 Annual Convention, Las Vegas, NV | REGISTER

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May 4-6, 2025 | IFA Legal Symposium | SAVE THE DATE

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May 9-10, 2025 | The IFA World Franchise Show, Miami, FL | REGISTER