How the 2024 US Election Could Impact Franchising

Fort Worth, Texas Sep 19, 2024  – As the 2024 U.S. presidential election draws closer, the franchising sector, a vital part of the American economy, is under scrutiny. Franchising, which involves franchisors granting franchisees the right to use their trademarks and business models, constitutes a substantial segment of the U.S. business landscape. With over 750,000 franchise establishments generating nearly $900 billion in annual revenue, its economic impact on the U.S. is significant. Franchise expert Derek Cafferata has been involved in the franchising industry for over 30 years, both domestically and internationally. He leads an award-winning team of franchise experts dedicated to sharing their extensive knowledge and expertise with aspiring franchisees and seasoned franchisors seeking expansion opportunities. This article explores the potential impact of the on the franchising sector and advises franchisees and franchisors on navigating the election landscape.

The Importance of Franchising in the U.S. Economy

Franchising plays a crucial role in the U.S. economy, creating millions of jobs and contributing billions to the GDP. It spans a wide range of industries, from fast food and retail to fitness and education. The franchise model is especially appealing to entrepreneurs seeking to operate a business backed by an established brand and support system.

Election Issues with Implications for Franchising

• Economic Stimulus and Small Business Support

Economic stimulus measures and support for small businesses are crucial topics. Franchising thrives in a stable economic environment, so candidates’ plans for economic recovery, including proposed stimulus packages or support programs for small businesses, will be closely analyzed.

• Healthcare Regulations

The Affordable Care Act (ACA) and its ongoing evolution are another area of consideration. Franchisees, often small business owners, can be affected by changes in healthcare regulations or requirements regarding their ability to offer competitive employee benefits. Candidates’ proposals to modify or expand the ACA will be a key factor for franchisees.

• Labor Policies

One of the most pressing issues for franchise owners is labor policy. With ongoing debates surrounding minimum wage increases and employee benefits, changes in labor laws could significantly impact the cost structures of franchise operations. Candidates’ stances on raising the federal minimum wage or expanding paid leave will be closely watched by the franchising community.

• Tax Policies

Taxation remains a critical issue. Franchisees, like other small business owners, are affected by tax policies, including deductions, credits, and overall tax burden. Candidates’ proposals for tax reform, including potential changes to business deductions or corporate tax rates, will be scrutinized for their impact on franchising.

• Regulatory Environment

Franchise operations are subject to various federal and state regulations. The approach of different candidates to regulatory oversight can influence franchise operations, including compliance costs and bureaucratic hurdles. A candidate’s stance on deregulation or increasing regulatory burdens will be important to the franchising sector.

Candidate Positions

Currently, major presidential candidates have outlined their positions on issues that affect franchising:

• Incumbent President: The current administration’s record on labor laws, healthcare, and small business support will be a significant factor. The sitting president’s policies will likely continue to influence the franchising sector unless major changes are proposed.
• Challengers: Opposition candidates often campaign on promises of reform. Whether they propose tax cuts, changes to labor laws, or new small business incentives, their platforms will be closely examined by franchisees and franchisors.

Action Steps for Franchisees and Franchisors

• Stay Informed: Franchisees and franchisors should stay informed about candidates’ platforms and how proposed policies could impact their businesses. Engaging with trade associations and business advocacy groups can provide insights and updates.
• Evaluate Impact: Assess how potential changes in policies could affect your business operations. This includes considering the financial impact of tax changes, labor laws, and healthcare regulations.
• Engage in Advocacy: Consider participating in advocacy efforts to represent the interests of the franchising sector. Engaging with policymakers and sharing how proposed policies may affect your business can help influence the debate.

“As a company, we take every opportunity to advocate for the best interests of the franchising industry,” says Derek Cafferata, President and CEO of All State Franchise Finders. “And we encourage every franchisor and franchisee to get involved, whether that be at a local, regional, or national level.”

• Plan for Uncertainty: Prepare for potential changes by developing flexible business strategies. Being proactive can help mitigate the impact of any new regulations or policies.

ALLSTATEFF.COM: Your Franchise Experts

Franchising is a dynamic and crucial part of the U.S. economy, and the outcome of the 2024 election could bring significant changes to the business landscape. By staying informed and prepared, franchisees and franchisors can better navigate potential policy shifts and continue to thrive in a competitive environment. As the election approaches, keeping a close eye on the candidates’ positions and their potential impact on franchising will be essential for all stakeholders in the sector.

Derek Cafferata and his team of franchise experts are available to assist you with any franchise business inquiries. To contact the team, call 1-800-544-2161 or visit today.