January 8, 2025

Take the 2025 Franchisor Survey!

Calling all franchisors! IFA invites franchisors to participate in the 4^th annual IFA-FRANdata Franchisor Survey. You can take the survey here. The survey will close Friday, January 17.

Why it matters: With a change of power at both the White House and Congress, it is critical that IFA hears directly from our members about how the labor, regulatory and economic landscape impact your business.

Go deeper: The survey should only take 10-15 minutes to complete, and all survey responses are confidential and will help IFA protect and promote the franchise business model. For reference, you may view the 2023 survey results here and the 2024 survey results here.

119th Congress Officially Underway

Last Friday, the 119^th Congress was sworn in with a 219 Republican-215 Democrat margin (with one vacancy). U.S. House Speaker Mike Johnson (R-LA) won the gavel on the first ballot, a far smoother process than the 15 ballots it required two years earlier.

What this means: Attention now shifts to the inauguration of President-elect Donald Trump on Monday, January 20, as well as his legislative priorities and strategy. IFA this week released our “2025 Roadmap to Franchise Growth,” to detail the policy priorities for the franchise community in conjunction with the start of the new Congress, ahead of the inauguration.

Our thought bubble: Last year, more than 90% of IFA’s FranPAC-supported candidates won their races, and we look forward to working alongside the incoming administration and the new Congress to ensure franchising is protected, enhanced and promoted by lawmakers.

State Legislatures Open in 2025

The new year may only be a week old, but by the end of January, 44 states will have started their legislative sessions. 

Zoom in: In Virginia, State Sen. Chris Head, a former homecare franchisee owner/operator, introduced S.B. 798, a similar bill from 2024 involving franchise agreements and post-term non-competes. We are working with the bill sponsor and key members of the Senate Commerce and Labor Committee, where the bill is expected to be heard in the coming weeks. 

• Meanwhile in Utah, state Rep. Ken Ivory introduced a bill that would allow franchisees the right to change their franchise agreement to close on Sundays. No official bill language has been released.  

The big picture: Last year’s elections largely preserved the balance of political power in state capitals. Arizona, Arkansas, Georgia, and New Jersey remain top targets for anti-franchise legislation, and locations where IFA already has boots on the ground advocating for the franchising sector. 

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IFA Mobilizes California Franchise Community

In a significant show of franchising force in California, IFA gathered more than 625 local restaurant owners to sign a letter to the California Fast Food Council warning that additional wage increases will have dire consequences on small businesses.

Go deeper: “Local restaurant owners are still trying to cope with the state’s new $20 per hour minimum wage – a whopping 25% increase – that just went into effect in April,” the letter stated. “This increase dealt a devastating blow to our local restaurants and local jobs, resulting in higher food prices for families already struggling with the high cost of living.”

The big picture: According to a July 2024 survey of local restaurant owners impacted by the $20 per hour minimum wage law, 98% reported raising food prices. 89% reported reducing employee hours and 74% reported an increased likelihood of shutting down their restaurants.

Corporate Transparency Act Deadline Delayed Again

There has been a flurry of activity related to the status of the Corporate Transparency Act (CTA), specifically its Beneficial Ownership Information (BOI) reporting requirements.

Zoom out: Under the IFA-opposed CTA, nearly all franchised businesses were slated to file an annual BOI report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) beginning January 1, 2025. Failure to comply exposed small business owners to potential fines up to $10,000.

The state of play: On December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit reinstated the nationwide pause on the enforcement of the CTA’s reporting obligations, meaning companies are not currently required to submit BOI reports. IFA is closely monitoring this fluid situation and will continue to provide timely updates as they become available.

IFA Hosts Pre-Inaugural Franchising Event

Ahead of the presidential inauguration, IFA will host a media event on January 14 in Washington, D.C., setting the stage for our policy roadmap in 2025 and beyond. You’re invited to attend, or watch the livestream, starting at 9:00 a.m. ET.

Go deeper: “The Road Ahead For America’s Small Businesses” will bring together top lawmakers, business people, journalists, and policy influencers for a conversation on the pressing issues of the day and the important role that franchising plays. Speakers include: 

• U.S. Rep. Kevin Hern (R-OK), co-chair of the Franchise Caucus
• Joe Erlinger, President, McDonald's USA
• Stephen Moore, Senior Fellow, Heritage Foundation and Economic Adviser to President-elect Trump
• Matt Haller, IFA President and CEO

Our thought bubble: Don’t miss Haller’s recent guest op-ed for Fox News laying out three specific ways franchising can help the incoming administration achieve their economic goals. Keep an eye out for more events in 2025 where we convene leaders across industry and government as we continue to go on offense for the franchise business model by ensuring franchising is a key part of the conversation in Washington and around the country.

January 9 at 1:00 pm ET | Webinar: System Change is a Key Difference Maker in a Franchise System's Success | REGISTER

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

January 16 at 12:00 pm ET | IFA Franchisor Forum: Global Trademark Portfolio Management: Strategies for Cost-Effective Protection | REGISTER

January 22 at 2:00 pm ET | Wednesday Wise Webinar: The Five Keys to Unlock Franchise Location Data, Profits, and Expansive Brand Growth | REGISTER

January 29 at 1:00 pm ET | 2025 FBN Webinar | REGISTER

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

April 11 - 12, 2025 | International Franchise Show London, ExCeL London | REGISTER

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

May 6-7, 2025 | IBA/IFA Joint Conference | SAVE THE DATE

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