FW FOCUS E GOVERNMENT RELATIONS IFA State Legislative ...€¦ · federal legislative priorities...
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42 FRANCHISING WORLD AUGUST 2005 S ince Jan. 2004, the government relations staff of the International Franchise Association has visited 21 states in an intensive effort to educate state lawmakers about the economic benefits that accrue from franchising. Capital visits are an integral part of IFA’s state government relations program because they underscore to lawmakers that the franchising community values fostering and maintaining relationships with them, and allows the association to build trust with legisla- tors by providing them accurate information about how legislation will impact franchising. Many times simply visiting with legislators in their capital offices once every two or three years is not enough to build lasting relationships. That is why IFA Director of Government Relations Matt Lathrop has traveled to key states such as California, Massachusetts, Nevada, Texas and Washington several times over the past two years. IFA also participates with a number of national state legislative organizations to help raise its profile with lawmakers. IFA participates in the American Legislative Exchange Council, the State Government Affairs Council, the Washington Area State Relations Group and attends the National Conference of State Legislatures annual meeting each summer. The Council of State Retail Executives, which is comprised of the leaders of state retail associations around the country, receives IFA support as well for its annual meeting. Visiting state capitals and participating in confer- ences with state legislators are very important ways to keep IFA on the cutting edge of state legislative agendas. While executing these activities requires careful planning and a lot of time, the payoff can make the difference between winning or losing an important legislative battle. Recent Visits to Vermont and Massachusetts Recent trips to the capitals in Vermont and Massachusetts provide a view of how IFA uses these relationship-building opportunities to further franchising’s statehouse agenda. In Vermont, Lathrop began by meeting with representatives of the Vermont Retail Association and concluded the day by meeting with Gov. James H. Douglas. Lathrop takes these opportunities to discuss franchising in the state, gather intelligence about statehouse politics and how franchising may be affected, and leaves the door open for future interaction between the IFA, its members and policymakers. In Montpelier, Lathrop thanked the governor for vetoing H. 524, a universal health care bill that would have required businesses to pay a new payroll tax to help fund a state administered health care plan. He also used the opportunity to encourage the governor to support federal associa- tion health plan legislation, one of the IFA’s highest federal legislative priorities which would not cost IFA State Legislative Agenda Moves Forward Using state capitol visits and participating in carefully selected organizations is part of an overall government relations strategy designed to advance IFA’s state legislative agenda. By John Gay FW FOCUS GOVERNMENT RELATIONS Vermont Gov. James Douglas, left, IFA Dir. Government Relations Matt Lathrop
Transcript of FW FOCUS E GOVERNMENT RELATIONS IFA State Legislative ...€¦ · federal legislative priorities...
42 FRANCHISING WORLD AUGUST 2005
Since Jan. 2004, the government relations staffof the International Franchise Association hasvisited 21 states in an intensive effort to
educate state lawmakers about the economicbenefits that accrue from franchising. Capital visitsare an integral part of IFA’s state governmentrelations program because they underscore tolawmakers that the franchising community valuesfostering and maintaining relationships with them,and allows the association to build trust with legisla-tors by providing them accurate information abouthow legislation will impact franchising.
Many times simply visiting with legislators intheir capital offices once every two or three years isnot enough to build lasting relationships. That iswhy IFA Director of Government Relations MattLathrop has traveled to key states such as California,Massachusetts, Nevada, Texas and Washingtonseveral times over the past two years.
IFA also participates with a number of nationalstate legislative organizations to help raise its profilewith lawmakers. IFA participates in the AmericanLegislative Exchange Council, the State GovernmentAffairs Council, the Washington Area State RelationsGroup and attends the National Conference of StateLegislatures annual meeting each summer. TheCouncil of State Retail Executives, which iscomprised of the leaders of state retail associationsaround the country, receives IFA support as well forits annual meeting.
Visiting state capitals and participating in confer-ences with state legislators are very important waysto keep IFA on the cutting edge of state legislativeagendas. While executing these activities requirescareful planning and a lot of time, the payoff canmake the difference between winning or losing animportant legislative battle.
Recent Visits to Vermont and MassachusettsRecent trips to the capitals in Vermont andMassachusetts provide a view of how IFA uses theserelationship-building opportunities to furtherfranchising’s statehouse agenda.
In Vermont, Lathrop began by meeting withrepresentatives of the Vermont Retail Associationand concluded the day by meeting with Gov. JamesH. Douglas. Lathrop takes these opportunities todiscuss franchising in the state, gather intelligenceabout statehouse politics and how franchising maybe affected, and leaves the door open for futureinteraction between the IFA, its members andpolicymakers.
In Montpelier, Lathrop thanked the governor forvetoing H. 524, a universal health care bill thatwould have required businesses to pay a newpayroll tax to help fund a state administered healthcare plan. He also used the opportunity toencourage the governor to support federal associa-tion health plan legislation, one of the IFA’s highestfederal legislative priorities which would not cost
IFA State Legislative AgendaMoves ForwardUsing state capitol visits and participating in carefully selected organizations is part of an overall government relations strategy designed toadvance IFA’s state legislative agenda.
By John Gay
F W F O C U S E G O V E R N M E N T R E L A T I O N S
Vermont Gov. James Douglas, left, IFA Dir. Government RelationsMatt Lathrop
AUGUST 2005 FRANCHISING WORLD 43
the state anything but would give smallbusinesses increased access to affordablehealth care. Finally, as with all suchvisits, Lathrop shared the findings fromthe association’s study, The EconomicImpact of Franchised Businesses, tounderscore how franchised businessescontribute to the state economically bycreating jobs and paying taxes.
MassachusettsIn Massachusetts, Lathrop teamed upwith representatives from the RetailersAssociation of Massachusetts, PizzeriaUno and Yum! Brands to walk the hallsof the Capitol. Whenever possible, IFAteams up with its members’ state govern-ment relations teams and memberslocally when it makes state capitol visits.IFA also works extensively with businessassociations such as retail associations inthe states to provide franchising a localvoice.
The group, which met with legislativestaff, members of the Secretary ofEconomic Development’s team, and
Joint Labor and Workforce CommitteeChairman Michael Rodrigues, encour-aged Massachusetts lawmakers toconsider how policy issues will impactsmall businesses in the franchisingcontext. Issues the group discussedincluded health care, how independentcontractor rules impact franchising,genera l bus iness i s sues l i ke theminimum wage and the economicimpact of franchising.
In addi t ion, par t ic ipat ing wi thnat ional organiza t ions l ike ALECprovides Lathrop the opportunity to seemany legislators several times a year andupdate them on the most recent happen-ings and legislative agenda items in theworld of franchising.
The ALEC Annual Meeting: A Lookat IFA’s ParticipationMost legislative organizations meetseveral times every year and chances arepretty good that IFA is participating ineach of those meetings. ALEC brings its
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WHAT THE MEDIA IS SAYING
Orange County Register
Franchising Growing
As A Two-Way Street
“We believe the program of self-regu-
lation we have created provides a cost-
effective and efficient solution that will
permit franchisers to focus their efforts
on building their brands and minimize
any disruptions to their relationships that
might result from occasional disputes,”
says IFA President Matthew Shay. n
States Highlighted Visited by IFA’s Government Relations
44 FRANCHISING WORLD AUGUST 2005
legislator and corporate memberstogether three times every year in thespring, summer and fall. IFA holds a seaton ALEC’s Commerce, Insurance andEconomic Development Task Force, thegroup that produces policy statementsabout franchise related issues, whichmeets at all three meetings. The taskforce, for example, several years agoadopted a resolution in opposition tofranchise relationship legislation.
Lathrop currently sits on the executivecommittee of the Commerce, Insuranceand Economic Development Task Forceand is an active participant in themeetings. Last August during the ALECannual meeting, IFA helped engineer aresolution in opposition to governmentmandates requiring employers to pay forhealth care through the task forceprocess for approval by working withlegislators as well as other corporatemembers.
These conferences are about morethan policy meetings, however. Thenetworking opportunities with legislatorsare many. Typically IFA will attendspecial legislative receptions and eventeam up with IFA members to host
groups of legislators for private lunchesor dinners where they can discuss policyinitiatives in a more relaxed setting.
Other organizations work in similarways. SGAC and NCSL both afford theIFA government relations team similaropportunities. The CSRE meeting, on theother hand, provides a great opportunityto brief others in the retailing communityabout issues of concern to the IFA.
In the end, using state capital visitsand participating in carefully selectedorganizations is part of an overallgovernment relations strategy designedto advance IFA’s state legislative agenda.The practical impact of maintaining goodrelations with lawmakers, before youneed their help, is that when you doneed legislative assistance you have thecredibility to influence a legislative orregulatory outcome. n
John Gay is IFA’s vice president of gov-ernment relations. He can be reached at202-662-0768 or [email protected].
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THE INTERNATIONAL FRANCHISE ASSOCIATION
OMBUDSMAN PROGRAMThe IFA and Self-Regulation The IFA Board of Directors, after two years of in-depth examination of ways in which to improve and strengthen the IFA Code ofPrinciples and Standards of Conduct, has adopted a comprehensive self-regulation program. The key components of the IFA’sSelf-Regulation program are:
• A Code of Ethics that is stronger and more clearly stated• An Investor Awareness and Education Program• A Franchise Compliance Education and Training Program• A Code Enforcement Mechanism• A Reward and Recognition Program• An Ombudsman Program
The IFA Ombudsman Program: A Key Component of Self-RegulationThe purpose of the IFA Ombudsman program is to:
• Enable franchisors and franchisees to identify disputes early and to assist them in taking preventative measures• Assist franchisors and franchisees by facilitating dispute resolution and recommending
non-legal methods and approaches to resolving disputes• Encourage franchisors and franchisees to work together to resolve disputes• Provide confidentiality throughout the process• Provide objective and unbiased advice and guidance to all of the participants
“The IFA Ombudsman Program is an opportunity for franchisees and franchisors to confidentially resolve disagreements with the aid of a fair, impartial and highly trained individual or panel. It is another
example of the progressive thinking of the IFA and its commitment to self regulation.” Steve Hammerstein, President and CEO, International Center for Entrepreneurial
Development and Chair of IFA Self-Regulation Task Force
For additional information, contact the IFA Ombudsman at (888) 452-0303 or visit our Web site at www.IFAresolve.com. For information about the IFA Self-Regulation Program, contact IFA at (202) 628-8000 or www.franchise.org.
WHAT THE MEDIA IS SAYING
FT.com (Financial Times)
Index Tracking: MeasuringTheir Successes and FailuresApart from pointing to leviathans such asMcDonald’s or Cendant, there was littleconcrete proof the International FranchiseAssociation could cite that the sector wasgrowing in importance. However, over thepast few years this has changed.
A report by PricewaterhouseCoopers,commissioned to the InternationalFranchise Association, provided a wealthof evidence of the importance of franchis-ing to the US economy.
More recently, franchise advocateshave had another source to trumpet. TheRosenberg Center at the University ofNew Hampshire, a centre funded bymoney from the founder of Dunkin’Donuts, has launched an index trackingthe performance of the top 50 franchisecompanies in the stock market. n
