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New Policy Platform Urges Growth for Franchising Industry

by clintshaff

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Recently, the International Franchise Association (IFA) released its 2013 policy platform that addresses what must be done to ensure the growth of franchising in the U.S. As it forms at least three percent of the country’s GDP, economic policy must not impede franchise growth if it’s to survive in such economic conditions. Below are some of the points set forth by the IFA.


Obama is currently seeking to reform the tax code to focus more on tax fairness. The IFA calls for the tax reform to consider the fact that many franchises file their taxes as LLCs and S-corporations. As these corporations don’t pay taxes on the corporate scale, they’re taxed by way of their personal income. The IFA also advises Congress to lower overall tax rate if the reforms will remove a number of tax deductions.

Veterans as Franchisees

The IFA supports the passage of the Help Veterans Own Franchises Act (HVOFA) authored by Senator Robert Casey (D-PA). As of today, Congress is yet to act on the review of this bill that will make it easier for veterans to own franchises, as well as provide them with specific incentives. The IFA estimates that there are at least 70,000 franchises in the U.S. whose owners are war veterans.

Immigration Reform

Recent years have seen the increase in the number of immigrants, legal and illegal, in the U.S.—most of whom will be out looking for jobs. The IFA sees this as an opportunity for immigrants to be part of the labor force for franchises; but to do that, they must be legalized. A call for a more streamlined process of gaining legal status and ideal working conditions is desired.

Small Business Lending

The Small Business Administration (SBA) supports franchises in terms of capital investment by giving them concrete loan programs. Even with the cost of franchising set at an affordable $10,000, franchisees still need an external source of capital. The IFA estimates that franchises comprise seven percent of small business loans, even though they’re not officially considered a small business. The IFA wishes to make lending more open, especially to those qualified to receive the additional capital.

There is a lot more to learn from the IFA’s policy report. You can head to for a copy of their stand on the future of franchising.

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