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2017 MULTI-UNIT FRANCHISING CONFERENCE
Gary Grace , former chair with Joey Robinson , 2018 co-chair
franchising is — and isn ’ t .
To illustrate the depth of the problem , Hashim , who called franchising “ the last bastion of the American Dream ,” cited one alarming finding from focus groups : three out of four believed a franchisee ’ s employees are paid by the franchisor . Other surveys have found that many employees of franchisees believe the same thing !
For a business that employs about 9 million Americans , generates $ 1.6 billion annually , and accounts for almost 4 percent of the U . S . economy , it seems that not a lot of people outside franchising understand how it actually works . “ This ignorance has led to a vacuum of knowledge about the business model ,” said Hashim , who spent much of his year as IFA chairman working on educational initiatives . “ This is all about the special interest groups who filled this vacuum with their own narrative ,” he said . To counter this and defend itself from over-regulation and other threats , he said franchising must promote its own story .
Robins asked the panel about what he called “ 50 / 500 ” rules : how small business with 50 or fewer employees are harmed by legislation targeting large organizations employing 500 or more . “ Legislators look at you like you ’ re Google or Apple ,” agreed Branca . “ In my company , it ’ s just me . That ’ s why we invested in lobbying — a critical line item in our budget — and convinced our franchisor to do so as well .”
Lotito spoke about joint employer and the NLRB . He said that with a new chair
appointed the previous Friday , and two more appointees to be nominated ( now done ), the NLRB is “ moving in the right direction .” He also cautioned against complacency . “ Your opponents spent $ 90 million and everything they said was wrong ,” he said , referring to the SEIU ’ s Fight for $ 15 campaign . “ We have this wonderful success story and we don ’ t tell it . That ’ s our fault — and we need more money to tell it . It needs to be told with passion and expertise to legislators at all levels . You ’ ve got truth on your side .” While all this bodes well for franchising , he said the SEIU will not give up easily .
Lunch in the Exhibit Hall came next , followed by a second afternoon of concur- rent sessions . Topics were how to protect your bottom line in the face of external threats ; becoming the employer of choice in your markets ( attracting and retaining the best talent ); securing capital ( separate sessions for $ 10 million or less and $ 20 million or more ); and key items to look for in assessing a brand . The Law Room and Money Room both opened for business again before attendees headed to the Exhibit Hall for the closing networking reception .
Get active ! The last morning wrapped up with breakfast and a panel discussion about how franchisees can get involved in telling their stories and protecting the franchise model from what Hashim had described as “ unintended consequences of good intentions ” on the part of legislators and regulators . The panel , introduced by Matt Haller , the IFA ’ s senior vice president of public affairs , included Shelly Sun , CEO of BrightStar Care and this year ’ s IFA chair ; Catherine Monson , CEO of Fastsigns ; Matthew Patinkin , an Auntie Anne ’ s franchisee ; and Ron Feldman , chief development officer at ApplePie Capital .
Their chief goal was to encourage franchisees to get active and tell their stories through participation in the IFA ’ s @ OurFranchise initiative ( atourfranchise . org ). Legislators at all levels are most influenced by small-business owners telling their own stories , said Haller , who urged franchisees to come to Washington , D . C . this September 11 – 13 to do exactly that .
Sun , who assumed the IFA chair ear-
Gary Robins , Rob Branca , Aziz Hashim , and Michael Lotito
68 MULTI-UNIT FRANCHISEE ISSUE III , 2017