Coalition of Franchisee Associations Applauds Passage of Landmark Virginia Legislation Banning Non-Competes in Franchise Agreements

The Coalition of Franchisee Associations (CFA) today announced its strong support for the passage of Virginia House Bill 69 and Senate Bill 240, landmark legislation that prohibits non-compete clauses in franchise agreements across the Commonwealth of Virginia. The bills were signed into law by Governor Abigail Spanberger and will take effect on July 1, 2026.

This legislation marks a significant advancement in protecting the rights and economic mobility of franchisees. By eliminating non-compete restrictions, Virginia is ensuring that franchise owners have greater freedom to pursue business opportunities and continue contributing to their communities without unnecessary contractual barriers.

The CFA played a central role in supporting this effort, working alongside policymakers, franchisees, and stakeholders to elevate awareness around the impact of non-compete clauses on independent business owners. The Coalition’s advocacy helped drive meaningful reform and bring balance to franchise relationships in the state.

The CFA also extends its sincere appreciation to State Senator Chris Head and State Delegate Dan Helmer for their leadership and commitment in advancing this legislation. Their efforts were instrumental in moving these bills forward and securing meaningful protection for franchisees across Virginia. The CFA further recognizes the contributions of the American Association of Franchisees and Dealers (AAFD) for its partnership and ongoing advocacy in support of franchisee rights, which helped reinforce the importance of this legislative effort.

“This is a meaningful and hard-fought victory for franchisees,” said Bill Mathis, Chairman of the Coalition of Franchisee Associations. “We commend Virginia lawmakers, Senator Head, Delegate Helmer, and Governor Spanberger for recognizing the need to modernize franchise law. The CFA was proud to support House Bill 69 and Senate Bill 240, and we believe this sets an important precedent for other states to follow.”

The CFA remains committed to advancing policies that protect franchisees, strengthen local economies, and promote fair franchising practices nationwide. The passage of this legislation in Virginia reflects growing momentum toward a more equitable franchise business model.

About the Coalition of Franchisee Associations (CFA) The Coalition of Franchisee Associations is a national organization representing franchisee groups across multiple brands and industries to include over 100,000 locations. The CFA advocates for fair franchising practices, supports independent franchise owners, and works to ensure a balanced and

Media Contact:

Dave Glodowski – Executive Director
daglo@comcast.net

Coalition of Franchisee Associations Names New Executive Director Dave Glodowski, Focuses on Strengthening Membership and Franchisee Voice

KENNESAW, GA — The Coalition of Franchisee Associations (CFA), the nation’s largest franchisee-only trade organization, has announced a renewed strategic focus on expanding membership and strengthening franchisee advocacy under newly appointed Executive Director Dave Glodowski, according to a recent Franchise Times interview.

Glodowski, who previously served in leadership roles within the CFA and brings decades of franchisee association experience, returns to the organization with a clear mission: to grow the coalition’s reach, deepen engagement across franchise systems and amplify the collective voice of franchise owners nationwide.

“As franchisees continue to navigate evolving operational and economic pressures, our goal is to ensure they have a stronger, more unified voice at the table,” Glodowski said in the interview. “When franchisees come together, they gain the strength, credibility and influence needed to drive meaningful change across the industry.”

The CFA currently represents franchisee associations across major national brands, including McDonald’s, Dunkin’, Domino’s, 7-Eleven and Planet Fitness. With 15 member associations and growing, the organization serves as a central hub for advocacy, education and collaboration among franchise owners.

Glodowski emphasized that membership growth is critical to expanding the CFA’s impact, particularly as franchisees face ongoing challenges related to operational control, vendor relationships and regulatory uncertainty. Strengthening participation across local franchisee associations, he noted, will be key to advancing the CFA’s mission of protecting and empowering franchise owners.

Industry leaders say the CFA continues to play an increasingly important role in shaping dialogue within franchising, particularly as franchisee associations work collectively to address shared concerns and promote transparency and fairness within franchise systems.

The Coalition of Franchisee Associations plans to build on this momentum by enhancing member value, expanding advocacy efforts and fostering stronger collaboration between franchisee groups across the country.

To read the full article click here

The Coalition of Franchisee Associations Formalizes Support for California Assembly Bill 2632

Washington, D.C. — The Coalition of Franchisee Associations (CFA) proudly formalized its support of California Assembly Bill 2632 (AB-2632), with Chairman Bill Mathis signing a letter of endorsement on behalf of more than 46,000 franchisees representing over 122,000 businesses nationwide.

AB-2632 focuses on strengthening transparency, accountability, and fairness within the franchise model. When franchisees contribute to marketing and technology funds, they deserve confidence that those dollars are being used exactly as intended. This legislation enhances reporting and audit standards, reinforcing trust across franchise systems while protecting the local business owners who invest in and serve their communities every day.

“As franchisees, we are deeply committed to the brands we represent and the communities we serve,” said Chairman Mathis. “AB-2632 promotes responsible stewardship of franchisee contributions and ensures greater transparency within franchise systems. It’s about fairness and maintaining the integrity of the business model that so many entrepreneurs rely on.”

As the largest franchisee-only trade association in the country, the Coalition of Franchisee Associations represents 16 independent franchisee associations across major brands including Subway, Burger King, 7-Eleven, Planet Fitness, Buffalo Wild Wings, Dunkin’, Supercuts, McDonald’s, Kumon North America, Inc., and Domino’s, among others. Through unified advocacy, CFA leverages the collective strength of franchisees to promote a fair and sustainable franchise model.

The Coalition looks forward to working alongside policymakers to advance AB-2632 and safeguard the integrity of franchising for generations to come.

To read the full press release, click here.

Coalition of Franchisee Associations Welcomes New Executive Director Dave Glodowski

Kennesaw, GA — December 5, 2025 — The Coalition of Franchisee Associations (CFA), the largest franchisee-only trade association in the country, is pleased to announce the appointment of Dave Glodowski as its new executive director, effective January 2026.

Glodowski brings more than three decades of hands-on franchise and entrepreneurial experience to the role. As a seasoned business owner, he successfully owned and operated multiple restaurants for over 30 years, giving him a deep understanding of the day-to-day realities and long-term challenges facing franchisees and small-business owners across the country.

Previously, Glodowski served as the executive vice president of operations for StarCorp, a major franchisee of Carl’s Jr. and Hardee’s. There, he led large-scale operational strategies, team development initiatives and performance improvements across a multi-state footprint. His background also includes extensive work within franchise associations, as well as expertise in financing growth, supporting franchise expansion and guiding succession planning for small-business owners.

“We are thrilled to welcome Dave as the new executive director of the CFA,” said Bill Mathis, chairman of the Coalition of Franchisee Associations. “His operational knowledge, franchisee-centered leadership style, and commitment to strengthening the franchising model make him an invaluable addition to our organization. Dave understands firsthand the unique pressures and opportunities franchisees face, and we look forward to his leadership as CFA continues to advocate for and empower franchise owners nationwide.”

In his new role, Glodowski will lead the CFA’s strategic initiatives, legislative advocacy, member engagement and partnership development efforts. He will work closely with the CFA Board and association leadership across all member brands to advance policies that strengthen and protect the franchise business model.

“I am honored to join the CFA and to serve franchisees across the country,” Glodowski said. “Having spent my career in franchising as an operator, a leader and an advocate, I’m passionate about supporting the entrepreneurs who drive this industry. I look forward to working with our members, partners and policymakers to champion the issues that matter most to franchisees.”

The CFA represents more than 71,000 franchised locations and millions of employees across numerous brands. With Glodowski at the helm, the organization enters 2026 with renewed focus on protecting the independence, equity and long-term success of America’s franchisees.

About the Coalition of Franchisee Associations (CFA)
The CFA is the largest franchisee-only trade association in the United States. Its mission is to unite franchisee associations, strengthen the franchise business model, and advocate for policies that protect the rights, equity and independence of franchise owners and acts as The Voice of Franchisees®. For more information, visit www.thecfainc.com.

Small Business Groups, Franchisee Associations, Diversity Chambers Hail American Franchise Act

Dear CFA Members,

We want to make you aware of an important development in Washington impacting all franchised small businesses. Yesterday, more than 100 business, advocacy, and diversity organizations from nearly every state released a joint letter urging Congress to support the American Franchise Act (AFA), H.R. 5267.

This bipartisan legislation would finally bring long-term clarity to the joint employer standard, an issue that has created uncertainty for franchise owners for more than a decade. The bill now has 51 cosponsors in the U.S. House and continues to build momentum.

The Coalition of Franchisee Associations is proud to stand alongside fellow franchisee groups, business coalitions and national diversity organizations in supporting this critical legislation. We encourage all members to stay engaged as the AFA advances.

You will find the full press release below for your reference.
PRESS RELEASE

Small Business Groups, Franchisee Associations, Diversity Chambers Hail American Franchise Act
A new letter from local business, advocacy and diversity organizations in nearly every state calls for certainty for franchised small businesses through this new commonsense legislative approach to the joint employer issue, highlighting the “clear, bipartisan support” for America’s local franchise businesses

WASHINGTON, D.C. – Today [Dec. 3], over 100 business, advocacy, and diversity organizations called on Congress to support the American Franchise Act (AFA), H.R. 5267, which is a new bipartisan legislative approach that would provide long-term certainty to America’s nearly 850,000 franchised small businesses after a decade of changes to the joint employer standard. The legislation is now up to 51 cosponsors in the U.S. House of Representatives.

The letter, which is available here, stresses the AFA’s “common-sense approach to the joint employer issue, which has mired franchise businesses in uncertainty for a decade. By codifying a clear, permanent standard for franchising, the AFA will help ensure that this critical business model– which generates around $900 billion in annual U.S. economic output and employs 8.8 million workers in every state and district—continues to grow and support local communities.”

“The bipartisan support for the American Franchise Act continues to grow in all corners of the country,” said Erica Farage, spokesperson for the Coalition to Save Local Businesses (CSLB), an organization led by the International Franchise Association (IFA) comprised of dozens of trade associations and franchisee groups. “This legislation is essential to franchise owners who need certainty to keep their doors open, continue creating meaningful jobs, and give back to their communities. We call on Congress to prioritize supporting the small businesses in their states and districts by passing the American Franchise Act.”

Signers of the letter feature 69 state associations and 33 national organizations, including diversity groups like U.S. Black Chambers, Inc., National ACE and the U.S. Hispanic Chamber of Commerce, and franchisee associations like the American Association of Franchisees & Dealers, Asian American Hotel Owners Association, Association of Kentucky Fried Chicken Franchisees, Coalition of Franchisee Associations, Dunkin’ Donuts Independent Franchise Owners, Franchise Business Services, National Association of Black Hotel Owners, Operators & Developers, National Association of Spa Franchises, National Franchisee Association, and North American Association of Subway Franchisees.
The letter was addressed to bill authors U.S. Reps. Kevin Hern (R-OK) and Don Davis (D-NC). Hern, a former McDonald’s franchisee, recently spoke before the U.S. House Education and the Workforce Committee on the need to pass the legislation, and Davis spoke on the House floor in September calling on Congress to pass the measure.

Introduced on September 10, the AFA comes after a decade of four changes to the joint employer standard and would lock in a clear, franchise-specific joint-employer standard to end years of regulatory whiplash that has raised costs, legal risk, and harmed growth for brands, local owners, and their employees. Most recently, the NLRB’s 2023 joint employer rule sought to expand the definition of joint employer to an ambiguous and overly broad standard that threatened the viability of the entire franchise model.

The full legislation can be viewed HERE. For more details on the AFA, click HERE.

About the Coalition to Save Local Businesses
The Coalition to Save Local Businesses is an initiative of the National Franchisee Association, EPCON Communities, Family Enterprise USA, Family Business Coalition, National Association of Black Hotel Owners, Operators, and Developers, American Hotel and Lodging Association, American Pizza Community, the Association of Kentucky Fried Chicken Franchisees, CHRO Association, Health and Fitness Association, Home Care Association of America, The International Franchise Association, International Salon/Spa Business Network, International Spa Association, National Federation of Independent Business, National Restaurant Association, NATSO (National Association of Truckstop Operators), Professional Beauty Association, Small Business and Entrepreneurship Council, SIGMA: America’s Leading Fuel Marketers, and the U.S. Travel Association. Together, they are united in support of a transparent joint employer standard that reaffirms the independence of local franchise owners. Learn more at savelocalbusinesses.com.

Misty Chally & John Motta: Small tax credit with big effect on hiring is worth saving

NEW HAMPSHIRE faces an alarming labor crisis. In areas including construction, nursing, and law enforcement, job vacancies are mounting while job seekers remain scarce.

According to the U.S. Chamber’s Worker Shortage Index, New Hampshire has just 0.69 available workers for every 1.00 job opening — meaning only 69 workers are available for each 100 vacancies. With roughly 34,000 open jobs and just 23,471 unemployed workers, the math reveals a simple truth: there just aren’t enough jobseekers to meet demand.

The consequences are visible in every corner of the state. Hospitals and health centers are struggling to fill shifts. Construction firms report constant difficulty hiring skilled trades, delaying housing projects and infrastructure upgrades. Even law enforcement agencies, already stretched thin, are competing fiercely for recruits.

Click here to read the full article.

Issue Update: Claim Submission for CC Settlement Extended

Dear CFA Members,

As previously reported, last year the U.S. Court of Appeals approved the biggest antitrust class-action settlement in history and set aside about $6 billion for U.S. merchants who paid artificially inflated Visa and Mastercard interchange fees. As a result, Coalition of Franchisee Associations members who accepted Visa and/or Mastercard at any time between Jan. 1, 2004, to Jan. 25, 2019, may be entitled to a share of the settlement.

As an update, the court granted an extension of the claims filing deadline from May 31, 2024, to Aug. 30, 2024.

Click here to learn more and to submit a claim before the updated deadline, Aug. 30, 2024.

New Association Manager Appointed to Coalition of Franchisee Associations

Coalition of Franchisee Associations (CFA), known as “the voice of franchisees,” has announced Greg Fry as the organization’s new association manager.

Fry, who joined CFA’s professional management company, Elevanta, in July 2023, plans to focus on leveraging the collective strengths of independent franchisee associations for the benefit of member franchisees. Fry has spent the last 20 years in different facets of association management. Prior to Elevanta, he spent nine years as the executive director of an equine sports association, where he grew their membership to over 20,000 members. Fry plans to leverage his extensive association management experience in growing CFA. CFA brings together some of the largest associations in the U.S. to provide a forum for members to share best practices, knowledge and resources for improvement, planning and development. Its efforts are focused on government affairs at the state and federal levels, franchisee education and training, executive leadership development and collective buying opportunities.

“Given the significant challenges facing CFA members from legislative and regulatory authorities, CFA’s importance cannot be overstated. Its leadership, from the board to management, is well-positioned to represent CFA during these pivotal times,” said CFA Chairman John Motta. “As a respected industry organization, CFA plays a vital role in advocating for the industry’s interests and ensuring its members’ continued success. With its extensive network of experienced professionals and commitment to its members, CFA will continue to be an essential voice in the industry’s ongoing evolution.”

Elevanta will work alongside Fry to provide executive leadership, meeting planning, accounting and finance, communications and other management services to CFA and eleven additional franchisee association clients. CFA and Fry are fully supported by Elevanta’s extensive experience and expertise in association management.

From its founding in 2007, CFA has grown to include 19 different associations in industries including restaurants and hospitality, car care, beauty and personal care services, convenience stores and fitness representing franchisees of well-known brands as Dunkin Donuts, BURGER KING, Subway, Meineke Car Care Centers, Buffalo Wild Wings and Supercuts, among many others.

About Coalition of Franchisee Associations

Coalition of Franchisee Associations, representing more than 46,000 franchisees who own over 121,000 businesses, which employ over 2.6 million individuals, is the largest franchisee-only association in the country. Its members make up the largest and most reputable independent franchisee associations with a mission “to leverage the collective strengths of franchisee associations for the benefit of the franchisee community.” CFA — with headquarters in Washington, D.C. — is committed to providing vital support and assistance to the franchisee community at large. To learn more about the organization, please visit http://www.thecfainc.com.

About Elevanta LLC 

Elevanta is an association management and professional services firm offering a robust suite of services to franchisees and business owners across a range of industries. Specializing in association management, event and meeting planning, communications and insurance solutions, Elevanta is a proven industry leader, guiding business owners in brands that include BURGER KING, Buffalo Wild Wings, Meineke Car Care Centers, Supercuts and QDOBA. The robust suite of services and programs provided through Elevanta is designed to meet the needs of your business and elevate your success. 

Contact: Greg Fry
CFA Association Manager
gregf@elevanta.com
678-797-5160

CFA Responds to NLRB Joint Employer Ruling

After much anticipation and apparently justified trepidation, the National Labor Relations Board (NLRB), released its 2023 final rule regarding a new standard for determining joint-employer liability for alleged violations of the National Labor Relations Act (NLRA). While the Coalition of Franchise Associations (CFA) agrees that a franchisor can legitimately be determined to be a joint employer of its franchisees’ employees in certain egregious cases, we believe that this new rule wrongly and needlessly goes far beyond such rare and identifiable situations.

The new standard set forth by the NLRB is far more encompassing, intrusive and unnecessary if its goal truly is to protect employees and allow small businesses to exist in their local communities independent of their franchisor. If the rule is implemented as stated, it will have unintended, and perhaps intended, consequences that will severely damage the franchisor/franchisee relationship. By requiring unprecedented franchisor oversight, in order to avoid joint employer liability, this rule could potentially reduce the number of opportunities for Americans to create small businesses, the jobs that come with them, and act to further suppress the wages of employees nationwide. Financial resources, that would otherwise be dedicated to training and wages, will instead be siphoned off to trial lawyers and litigation. Moreover, the new rule will negatively impact currently healthy franchise and employment relationships and exacerbate those that are already strained and/or dysfunctional affiliations.

The CFA has many concerns regarding this new rule and seeks immediate clarification from the NLRB that definitively states what does, and does not, constitute joint-employer liability within the inherently unique franchisor/franchisee relationship. Without such clarity, a case-by-case determination can ONLY lead to expensive, extortive and business-destroying litigation. Specifically, CFA requests clarification on acceptable methods regarding development, maintaining and enforcement of brand standards that will not trigger joint-employment liability. In addition, policies involving equipment, fixtures, training, uniforms and store hour requirements as set forth by a franchisor in any franchise agreement, operating manual and/or Franchisor Disclosure Document must be addressed with specificity so as to alleviate threats of joint liability for both franchisors and franchisee. It is simply irresponsible to leave parties with their life savings fully invested to a “I’ll know it when I see it litigated” mandate.

The CFA thanks the NLRB for its attention to the franchise industry, but we believe that it has unnecessarily created more confusion and angst in the franchise community through the muddied language of this final rule. Ironically, the rule makes it much more likely that franchisees’ workers will eventually become the direct employees of its franchisor – a separate conglomerate that has no knowledge of an employee’s identity or individual concerns – rendering them faceless minions in an out of state profit center with no flexibility or desire to address the employees’ needs. They will become faceless and replaceable numbers, not people known to a local franchise owner. The additional costs associated with compliance and implementation of this rule will, undoubtedly, harm the well-being, financial prospects and legal standing of all parties involved. The CFA firmly believes that implementation of the new rule as it presently exists will work to eliminate the local businesses that drive our industry and, instead, transfer that economic potential into large, publicly traded conglomerates that have little stake in the day-to-day operations and no vested interest in local community involvement that is the cornerstone of the franchise model.

We Need the Workers That the American Dream Is Attracting

It is no secret that the Washington establishment, both Republicans and Democrats, are increasingly frustrating to those of us who live and work outside of their DC bubble. As Chairman of the Coalition of Franchisee Associations, I have been travelling to Washington for years now, on my own dime, to talk and plead with our lawmakers regarding the critical labor shortage we have in this country. Yet after this last week of meetings, my level of frustration reached an all-time high as I believe our leaders have reached an all-time low.

In my lifetime, if anyone said that “jobs” was a major issue, it was because there was a lack of them available to people. Today, “jobs” is a major issue because we do not have enough people who work – and this problem is just as serious as any sky-high unemployment number we have faced in our country’s history. Much of today’s economic issues and problems, from supply chain, to inflation, to productivity and global competition, are a result of the lack of individuals who are willing and able to join the workforce. In fact, right now, there are more people leaving the workforce than entering it.

CFA Announces Membership in CLC

The Coalition of Franchisee Associations (CFA) is proud to announce its membership in the Critical Labor Coalition (CLC). A non-profit organization based in the D.C. metropolitan area, CLC was formed as a result of CFA Chairman, John Motta’s vision and leadership of the CFA to find solutions to address the critical labor shortage that is impacting many franchisees and their businesses across the U.S. CFA recognized this issue and identified potential solutions that were presented to industry organizations. The result of this effort was the development of the CLC, of with CFA is now pleased to continue to support. “We are excited to have CFA onboard and are looking forward to getting franchisees across the country engaged and informed on this issue,” states CFA Association General Manager, Amy Mancuso.  

Comprised of trade associations, nonprofit organizations, corporate and individual business owners, CLC advocates with one voice for policies that incentivize individuals to return to work. With targeted legislative and education efforts, CLC’s mission is to reinvigorate the workforce, stimulate the economy and put money in the pockets of America’s workers. 

Members of CLC include the National Restaurant Association, American Hotel and Lodging Association, Inspire Brands, the National Association of Convenience Stores and many others. To learn more about the Critical Labor Coalition, go to www.criticallaborcoalition.org 

About the Coalition of Franchisee Associations 

The Coalition of Franchisee Associations, representing more than 46,000 franchisees who own over 121,000 businesses, which employ over 2.7 million individuals, is the largest franchisee-only association in the country. Its members make up the largest and most reputable independent franchisee associations with a mission “to leverage the collective strengths of franchisee associations for the benefit of the franchisee community.” The CFA — with headquarters in Washington, D.C. — is committed to providing vital support and assistance to the franchisee community at large. To learn more about the organization, please visit http://www.thecfainc.com 

Coalition of Franchisee Associations Meets with the U.S. Department of Treasury to Urge Deductibility of PPP Loans

 

FOR IMMEDIATE RELEASE 

Contact: Lucila Garcia, (323) 646-2150

                                                                                  LucilaGarcia@Rational360.com

COALITION OF FRANCHISEE ASSOCIATIONS MEETS WITH THE

U.S. DEPARTMENT OF TREASURY TO URGE DEDUCTIBILITY OF PPP LOANS

 

Coalition of Franchisee Associations Members from Hotel, Salon, Food Industry Discuss Negative Impact of Tax Notice on Their Businesses

WASHINGTON, D.C. (Sept. 18, 2020) – The Coalition of Franchisee Associations, the largest franchisee-only trade association in the country, announced today their exclusive meeting with U.S. Department of Treasury representatives to express the negative impact that not being able to deduct items purchased with Paycheck Protection Program (PPP) funds is having on their businesses.

 

When Congress created the PPP, its intent was for business expenses paid by PPP to be tax deductible. However, guidance from the IRS states that expenses paid for with PPP funds are now taxable, eliminating the assistance intended by the PPP program.

 

“This legislation was pulled together quickly due to the catastrophic nature of the pandemic. Tax legislation is complicated, and we have seen unintended drafting errors in the past,” said John Motta, chairman of the CFA. “The omission of a provision to make the expenses associated with PPP forgiveness deductible puts a taxpayer in the same place as if the law were silent. Clearly, Congress did not intend that result.”

 

IRS’ notice, issued Aug. 28, interprets items purchased with PPP funds as non-deductible business expenses. By disallowing these business deductions, the IRS is, in effect, taxing forgiven PPP dollars and consequently reducing the actual amount of aid extended to desperate franchisees.

 

“Franchisees are in a place of unprecedented economic distress. Congress and the administration needs to do right by these small-business owners who are struggling through no fault of their own,” said Misty Chally, executive director of the CFA. “The Paycheck Protection Program has been a lifeline to America’s franchisees, and the administration needs to support the intent of the law.”

 

Franchisee representatives included brands: Dunkin’, Asian American Hotel Owners Association, Supercuts, Buffalo Wild Wings and Job Creators Network.

 

U.S. Department of Treasury participants included: Dave Kautter, assistant secretary of the Treasury for Tax Policy; Jeff Van Hove, senior advisor, Office of Tax Policy; and Krishna Vallabhaneni, tax legislative counsel.

 

About Coalition of Franchisee Associations
The Coalition of Franchisee Associations (CFA) is the largest franchisee-only trade association in the country, who brings together some of the largest and most reputable independent franchisee associations. Founded in 2007 and comprised of franchisee association leaders dedicated to the development and growth of their own organization, the CFA is committed to protecting and preserving the value and integrity of franchised businesses. For more information, visit https://thecfainc.com.

Coalition of Franchisee Associations Issues Statement on the Tax Cuts and Jobs Act

WASHINGTON, D.C. (November 6, 2017) – The Coalition of Franchisee Associations (CFA) applauds the introduction of H.R. 1, the Tax Cuts and Jobs Act. It’s time Congress takes on the difficult challenge of updating the tax code and provides an environment that better incentivizes business investments. There are many positives introduced in the Act, such as the simplification of rates for average, American taxpayers; eventual repeal of the estate tax; lowering of certain corporate taxes; expanded deductions of business investments; and others.
“We look forward to being fully engaged in the process to bring forward the concerns of franchise owners,” said Keith Miller, chairman of CFA. “Our representatives need to make sure the franchisees that invest and employ individuals in our local communities have a tax structure that encourages future investment.”
The CFA is concerned, however, about what appear to be steep increases in taxes and complexity for small, pass-through business entities and is actively working with Congress to address these concerns. The elimination of the state and local tax deduction and limited deductibility of interest payments on standard business loans are issues of concern involved in these efforts.
“We need to ensure the tax benefits of this reform benefit the small businesses that are the backbone of growth, jobs and opportunity in the country,” added Robert Branca, CFA vice chair who is currently working on the issue in Washington. “These small businesses are the least able to handle added complexity and cost, and are in most need of tax relief, and we believe lawmakers and the administration want to help them. Our intent is to help show them how best to do that.”
About the Coalition of Franchisee Associations
The Coalition of Franchisee Associations, representing more than 41,000 franchisees who own over 86,000 businesses, which employ over 1.4 million individuals, is the largest franchisee-only association in the country. Its members make up the largest and most reputable independent franchisee associations with a mission “to leverage the collective strengths of franchisee associations for the benefit of the franchisee community.” The CFA — with headquarters in Washington, D.C. — is committed to providing vital support and assistance to the franchisee community at large. To learn more about the organization, please visit http://www.thecfainc.com.

Coalition of Franchisee Associations Supports Treasury Decision to Withdraw Proposed Section 2704 Regulation Changes

WASHINGTON, D.C. (Oct. 6, 2017) – The Coalition of Franchisee Associations (CFA) is proud to announce that an effort led by CFA Vice Chair Robert Branca, on behalf of the entire franchising industry, has led to the withdrawal by the Treasury Department and Internal Revenue Service (IRS) of proposed changes to Section 2704. These changes could have had a substantial impact on franchisees, as limitations in liquidating their franchise assets would have created an over valuation in gift reporting.

Mr. Branca initially commented on the proposed regulation in this letter, which was widely reported in the business, franchising and estate planning industries. In addition, Mr. Branca testified at the proposed rule change hearing on Dec. 1, 2016, and was joined by CFA Chair Keith Miller, who also testified. Both pointed out the many limitations, specific to franchising, that reduce the value upon sale or transfer; therefore, the current rule that allows for discounting on gift reporting is needed.

“This withdrawal reflects the reality that the IRS sought to ignore and will help countless small family businesses remain with family,” Mr. Branca said.

 

Coalition of Franchisee Associations Commends NASAA for Commentary on Financial Performance Representations

WASHINGTON, D.C. (Aug. 9, 2017) – In May 2017, the North American Securities Administrators Association (NASAA) approved its “Commentary on Financial Performance Representations” regarding Financial Performance Recommendations (FPRs) made by franchisors under Item 19 of the Franchise Disclosure Document (FDD). The NASAA commentary provides state regulators with guidance on what is required by both federal and state law if a franchisor chooses to discuss sales and/or profits in its FDD.

Specifically, the NASAA commentary adds seven new sections to Item 19 of the FDD to help guide regulators and protect investors from false or misleading FPRs. These new requirements apply to statements in regard to gross sales, gross profits and net profits. The guidance encompasses both company-owned data and franchisee data and includes the use of disclaimers and projections, among other FPRs.

The Coalition of Franchisee Associations (CFA) applauds NASAA for its commentary and believes this guidance will assist new and renewing business owners in making a sound financial decision. CFA urges the franchisor community to support NASAA’s guidance, as it helps alleviate concerns over earnings claims and misleading sales techniques.

“Franchising is a substantial part of the U.S. economy and, as such, presents numerous investment opportunities. It is important that people can feel informed when investing as franchisees and that franchisors offering investment opportunities have clear rules that they can easily follow. This is why CFA actively followed the rule-making process,” said CFA Vice Chairman Rob Branca. “This is a big step as CFA continues to fight for more comprehensive disclosure and transparency in franchising.”

To view CFA’s July 26 webinar on the new NASAA commentary, click here.