The Coalition of Franchisee Associations (CFA) has enthusiastically engaged in government relations efforts since its inception in 2007. With an office located in Washington, D.C., the CFA employs an active government relations department to represent the best interests of franchisees in our nation’s capital.
On behalf of the CFA, the government relations staff has participated in Capitol Hill visits with legislators, arranged receptions to connect member franchisees with their representatives and partnered with like-minded organizations to shape the legislative agenda.
The following are just a few of the issues the CFA has focused its government relations efforts on:
- FINANCIAL DISCLOSURE: The CFA supports the Small Business Administration (SBA) Franchise Loan Transparency Act (H.R. 3559), which ensures transparency in the loan processes of the Small Business Administration. H.R. 3559 requires franchisors to disclose average first-year revenues, number of franchise locations sold and out of business and average revenues for all franchise locations to prospective franchisees via the Franchise Disclosure Document. As a result, franchisees have more accurate representations of sales and are able to purchase and run their business accordingly.
- FRANCHISE RELATIONS: The CFA supports the Fair Franchise Act of 2015 (H.R. 3196), which is aimed at leveling the playing field in regard to the franchisee-franchisor relationship. Among other provisions, H.R. 3196 prohibits unfair and discriminatory practices by franchisors. It also requires all parties to act in good faith and allows franchisees to seek judicial remedies for alleged violations of the contract — a right currently prohibited in many franchise agreements. The bill gives franchisees more control in the sale, transfer and renewal of their franchise, and requires reasonable notice and cure periods in regard to the termination of an agreement.
- JOINT-EMPLOYER STANDARD: The CFA supports the Protecting Local Business Opportunity Act (S. 2015, H.R. 3459), which protects small-business owners by restoring the joint employer definition to its previous form. The National Labor Relations Board’s (NLRB) recent decision to re-define franchisors and franchisees as joint employers in labor complaints overrules 30 years of legal precedent and threatens the entire franchise model. This decision erodes a long-standing business model and jeopardizes the success of small-business owners across the country, impeding on entrepreneurship and job growth.
- ADA LAWSUIT DISCLOSURE: The CFA supports the ADA Education and Reform Act (H.R. 3765) which protects small-business owners against frivolous lawsuits filed under the guise of the Americans with Disabilities Act (ADA). H.R. 3765 requires plaintiffs to provide specific information detailing the circumstances surrounding denial of access in order to prevent attorneys from preying on small businesses to make a quick profit. The bill also discourages the awarding of exorbitant legal fees by requiring notice of an alleged violation and an opportunity for small-business owners to cure the problem. ADA is an important civil rights measure that franchisees have long supported; H.R. 3765 protects those rights while preventing abuse of the legal system through frivolous claims and exorbitant demands.
To learn more about these and other key legislative issues, go to the CFA Votes! website, which also includes CFA position papers, voter resources and will let you know how your members of Congress voted on important franchisee issues.