2024 Advocacy Summit: IFA takes a Bipartisan Approach to Achieving Priorities

In early September, less than two months before an intense presidential election, more than 350 franchisees, franchisors, and suppliers descended on Washington, D.C., for the International Franchise Association’s (IFA) annual Advocacy Summit. This is the one time a year when members of the franchise community take their priorities and concerns directly to those who pass federal laws that affect their day-to-day business. More importantly, they share their stories personally with the people who need to hear them.

This year, there is no shortage of topics in Washington with a significant impact on franchising. Ahead of the election, franchising has made major national news with Vice President Kamala Harris touting her time working at McDonald’s. I recently highlighted in the Wall Street Journal the ways that lawmakers and candidates should use this moment to proactively support our business model and change course from some of the harmful policies of the past. 

Just as franchising knows no political bounds or allegiance, policies that promote the continued growth and fair treatment of the business model enjoy support from both political parties. 

Atop that list, and a continued priority at the Advocacy Summit, is lingering uncertainty around the future of joint employer. With this year’s bipartisan vote on H.J. Res. 98 to overturn the National Labor Relations Board’s (NLRB) expanded joint-employer rule, the entire Congress—for the first time ever—is on record either for or against our most critical issue. 

We took this opportunity to thank our champions who stood with us on joint employer and express our disappointment with those who chose a different course. We expanded these efforts through our newly formed Coalition to Save Local Businesses organization with advertisements educating constituents about this issue. Our message is unequivocal: Should the NLRB implement an expanded joint-employer standard, the franchise model and all the good it has created for so many would be imperiled. Fortunately, an IFA-led lawsuit stopped the proposed joint-employer rule from taking effect. 

Other issues at the Advocacy Summit included the debate over important provisions of the 2017 Tax Cuts and Jobs Act set to expire at the end of 2025. It’s a tax cliff that could lead to significant tax increases on small businesses if it is not addressed. Advocates urged members to support three specific provisions critical to franchised small businesses.

First, we called for a permanent extension of Section 199A, which allows for a 20% deduction of qualified income for pass-through businesses. Most franchised businesses are structured as pass-through entities, and this section promotes equity in the tax code between small businesses and large corporations whose tax cuts were made permanent in the original bill.

Second, we stressed the importance of the restoration of 100% bonus depreciation, a tax incentive aimed at increasing business investment by allowing companies to accelerate the depreciation of qualifying assets, such as equipment, rather than write them off.

Finally, we pushed for a permanent reauthorization of the Work Opportunity Tax Credit (WOTC) to encourage businesses to hire and retain marginalized workers.

Outside of Washington, we have also provided opportunities for franchisees to engage in the tax debate through field hearings with members of the House Ways and Means Committee, the key tax-writing committee in Congress. Fastsigns and Sport Clips franchisees participated in a field hearing with U.S. Rep. Lloyd Smucker, R-Penn., and Express Employment Professionals staff joined U.S. Rep. Terri Sewell, D-Ala., in Alabama. 

While we don’t know what next year’s tax debate will bring, especially with the makeup of Congress yet to be determined, we are making strong inroads with lawmakers ahead of these major decisions, ensuring they keep franchised businesses front of mind as they write new tax laws. 

Just as the franchise community is staying front and center in the policy debate, we are also staying engaged with both political parties to ensure IFA and our members have a seat at the table regardless of the election’s outcome. Over the summer, IFA had a major presence on the ground at both the Democratic National Convention in Chicago and the Republican National Convention in Milwaukee.

Franchises welcome the support of any candidate who champions their priorities. As the oldest and largest trade association representing franchising, IFA works to protect, enhance, and promote the franchise business model worldwide. In the lead-up to 2025, we will continue working with lawmakers on both sides to achieve our priorities so that the model will continue to thrive and generate opportunity around the U.S. and beyond.

Matthew Haller is president and CEO of the International Franchise Association.