With the 119th Congress underway and the Trump administration making ready to take workplace, the International Franchise Association (IFA) has outlined its 2025 Roadmap for Small Business Growth. The suggestions, designed to bolster franchise companies and drive small enterprise development, concentrate on 5 key areas that would form the way forward for franchising. This is what franchise homeowners ought to look ahead to.
Joint employer requirements
One among IFA’s prime priorities is codifying a joint employer normal. The objective is to make sure franchisees keep autonomy whereas nonetheless benefiting from franchisor assist and model consistency and would carry much-needed readability to a long-debated problem. A transparent joint employer normal would shield staff of franchisees from being unfairly categorized as staff of the franchisor whereas permitting franchisors to implement model requirements with out taking over extra legal responsibility.
The IFA waged a legal battle with the Federal Trade Commission in 2023 and 2024 in opposition to the proposed expanded rule. The IFA-led coalition finally defeated the industry-changing rule in federal court docket final July.
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Tax insurance policies that promote development
The group is advocating for a number of key adjustments to tax coverage to create a extra favorable atmosphere for franchise development. One among its major objectives is to make the Section 199A deduction everlasting, because it provides important tax relief to small companies by decreasing taxable revenue, thereby encouraging reinvestment and growth.
Moreover, the IFA seeks enhancements to the Work Opportunity Tax Credit (WOTC), which incentivizes hiring people from teams going through employment obstacles and helps franchise homeowners construct a extra numerous workforce.
One other precedence for the IFA is the repeal of the property tax, sometimes called the “demise tax.” Its elimination would ease the monetary burden on franchise homeowners trying to go their companies right down to the subsequent era. Lastly, the IFA is looking for an extension of the veteran tax credit, which rewards employers who rent veterans — a step that not solely helps veteran employment but in addition strengthens franchise groups.
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Higher transparency
One of many IFA marketing campaign’s focuses is modernizing the FTC’s Franchise Rule, which requires franchisors to reveal key particulars to potential franchisees and strengthens pre-sale disclosure necessities. For the IFA, enhancing transparency is about extra than simply compliance — it is about creating an atmosphere the place franchisees could make well-informed selections with a transparent understanding of the dangers and rewards. This, in flip, helps stop misunderstandings and disputes, resulting in stronger, extra sustainable franchise relationships.
By advocating for clearer disclosure, the IFA goals to cut back friction within the franchising course of and foster long-term success for all events concerned.
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Combating regulatory burdens
Extreme rules and charges can place important monetary and operational pressure on franchise homeowners, making it more durable to compete and thrive. To handle these challenges, the IFA is advocating for streamlined rules and fairer price constructions, making certain small enterprise homeowners can concentrate on development and sustainability. Its roadmap consists of the next initiatives, every tailor-made to assist franchisees:
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Enhance entry to SBA loans: SBA loans are a lifeline for a lot of franchisees, providing reasonably priced financing choices to begin or increase their companies.
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Cut back credit card transaction fees: Many franchise companies rely closely on card funds, and excessive transaction charges can erode already skinny revenue margins.
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Help a balanced nationwide privateness legislation: At the moment, a patchwork of state privateness legal guidelines creates compliance challenges and will increase prices for franchisees working in a number of states.
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Problem the Company Transparency Act (CTA): The CTA imposes new reporting necessities on small companies, including administrative burdens.
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Blocking dangerous state-level insurance policies
State-level insurance policies usually add complexity for multi-unit franchise operators. Constant federal requirements may assist mitigate operational headaches and assist growth. The IFA warned in opposition to state-level initiatives that would undermine the franchise mannequin.
Though it helps implementing present labor legal guidelines, it opposes the creation of recent regulatory councils that would overburden small companies.
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Trying ahead
As franchising continues to evolve, the IFA’s 2025 roadmap highlights the group’s dedication to fostering development, sustainability and resilience in an more and more complicated enterprise atmosphere. The proposed initiatives goal to handle a few of the most urgent challenges going through franchise homeowners at the moment, from regulatory burdens to financial pressures, whereas additionally laying the groundwork for long-term innovation and success.
Nevertheless, the success of those initiatives hinges on legislative motion on the federal and state ranges and sustained advocacy from the franchise group. Franchise homeowners and stakeholders play a important function in amplifying the IFA’s voice, participating with policymakers and demonstrating the tangible advantages of a vibrant, truthful and aggressive franchise sector.
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