For the second year in a row, we were thrilled to have the opportunity to attend the Coalition of Franchisee Associations meeting in Washington DC. The meeting presented an opportunity for franchisees around the country to join together for a common cause: to represent and communicate their needs and interests to US government. The association meets yearly; the meeting showcases speakers and discussion surrounding existing legislation.

Participating brands included Burger King, Hardees, North American Association of Subway Franchisees, Dunkin Donuts Independent Franchisee Owners, and Meineke Dealers Association, among others.

This year presented a valuable opportunity for franchisees to meet with senators or their legislator aides, who heavily influence and interpret laws for their respective senators.  The aides have an intimate understanding of current legislation, and my subgroup was able to meet specifically with the aides/representatives for Johnny Isakson and Saxby Chambliss.

The three key issues under discussion throughout the conference were tax reform, health care reform, and regulatory reform.

One of the major topics under discussion for tax reform was depreciation. Currently, the federal tax code allows restaurant owners to depreciate building costs, renovations and improvements over a 39 ½ year schedule. However, in an effort to ease the effects of this code, Congress has allowed a 15 year depreciation schedule on a temporary basis. The CFA strongly urged senator’s representatives to enact the 15 year schedule permanently, allowing franchisees to increase their cash flow, potentially open additional restaurants, and reinvest in their businesses. Such legislation would certainly contribute to overall economic growth.

Health care is also a major topic of concern to franchisees, and was a focal point in discussions. Specific talks centered on health care mandates requiring operators to provide coverage for full-time employees and fines for non-compliance. Ideally, the current health bill would be rescinded—however, if this isn’t possible, franchisees suggested that the “PPACA” (Patient Protections and Affordable Healthcare Act) be repealed, and that a “PPE”—Profits Per Employee metric be installed in its place. A PPE model would positively affect smaller businesses and greatly increase the likelihood of profitability, increasing their chances of staying in business.

The third talking point throughout the conference was regulatory reform, and the importance of taking steps to reduce the staggering 4,000 new regulations issued on a yearly basis. For smaller businesses in particular, the cost to adhere to these regulations can be financially crippling. Operators strongly urged representatives to minimize regulations and support the “Small Business Regulatory Freedom Act”, which is designed to help small business owners stay afloat in this difficult economic climate.

We’re proud to be a supporter of the CFA, and to be able to participate in the meetings and represent the interests of small businesses on Capitol Hill was an amazing and educational experience. The better we understand the needs of our clients, the more effective we can be at supporting them. This was a prime opportunity to give back to the brands that we work with on a daily basis. We witnessed and participated in lively debate and discussion, and were able to see both parties represented. Needless to say, we’re already looking forward to next years’ meeting.