Chairwoman: IFA Listens to Both Franchisees and Franchisors
WACO, Texas – In this second of a two-part interview, the chairwoman of the International Franchise Association discusses diverse topics such as keeping tax cuts that were implemented during the Bush presidency and the Association’s relationship with its franchisees.
Ms. Dina Dwyer-Owens is chairwoman and CEO of The Dwyer Group, positions she has held since 1999. The company has six franchise brands servicing residences and businesses, including Aire Serv and Mr. Electric. She is also this year’s chairwoman of the International Franchise Association, a trade organization that lobbies on franchise issues. This year the group celebrates its 50th anniversary, making it one of the oldest franchise associations.
BMM: [Besides the legislative initiatives already discussed in the first of this two-part series; namely, stopping the current health care reform bills, having Congress approve of President Obama’s initiatives to open up access to credit, and preventing Card-Check from being enacted] Are there other initiatives out there that you think franchisees should be watching?
Dwyer-Owens: The whole idea of tax increases. We all need to continue to write, call and have meetings with our representatives to let them know that this is not the time to raise taxes.
We are struggling enough as small business owners, and to raise our taxes is not going to help any of us. So I think we have to keep pounding those messages from health care to credit to taxes. And again, card check is a piece of all of that. But I think we need to just continue to make sure that our voices are heard loud and clear.
The IFA has a wonderful grass roots site. I don’t know if you are familiar with it, but I have really utilized that tool here at Dwyer. For example, with all of the stuff going on with health care lately, the IFA sending messages to us [franchisors] saying push this out to your system so that franchisees understand what is going on.
If they’d like to take action, it is so simple to go to the grass roots site and click in. And get messages to your representatives in letters by mail or email. It takes five minutes. So we are making this as easy as possible through the IFA for franchisees to make their voices heard. If they can’t take the time to go to D.C. and be face to face with representatives, they can at least get online and get their messages to their representative.
That’s been a huge tool for us. It’s so easy.
BMM: There are franchisees, independent franchisee associations and some franchisee advocates who say the IFA will never act on issues that work against their 1,300 paying franchisor members. They say where franchisee associations support The Fair Arbitration Act, the IFA opposes it. Where franchisee associations have successfully lobbied for the new Rhode Island Fair Dealership Act to protect franchisee interests, the IFA lobbied to oppose it. What is your take on this?
Dwyer-Owens: That’s not front and center for me at all. I have not heard of those complaints by franchisees.
I think franchisors get that if we aren’t in this to help franchisees be successful, that it’s not good for any of us. I could have a whole 'nother segment on this [issue]. I haven’t heard this negativity.
We certainly have more franchisor members at the IFA paying than we have franchisee members. That’s just a fact. We want more franchisee members. We want to protect what is good for franchising in general. But again I have not heard any negativity or pushback on this specifically, so I really have a hard time speaking to it.
BMM: That’s part and parcel of the criticism of whether franchisee voices are being heard by the IFA. Tell me how franchisees participate in what the IFA decides to lobby for.
Dwyer-Owens: The IFA has the franchisee forum and they have a big influence on the decisions that we make. The chairs of the franchisee forum do sit on the board. In addition, we have other franchisees who sit on the board.
So we talk about the franchisee perspective a lot. And they're not afraid. You know that. They’re not afraid to come to the table and let us know when they are dissatisfied with something.
We have healthy discussions. But they are healthy discussions, and they are fair discussions. And then we come to a conclusion that we think is good for everybody.
Again, maybe I’m naïve, but I have a good feel for the relationships we have with the franchisees who are involved with the IFA and they are working hard to do what is good for franchising, especially for the franchisees because that is really the key role that they play. But I think there is a very healthy relationship there.
BMM: It sounds like the IFA has a mechanism to help them act on issues in which there is a consensus of both groups — franchisee and franchisor.
Dwyer-Owens: We work hard to do that.
There’s no perfect organization. There’s no perfect franchisor. There’s no perfect franchisee. It’s a matter of let’s come to the table with the issues and let’s have a healthy discussion to make some good decisions.
Read Part One of this two-part series, IFA Chairwoman: Health Care Bill No Help
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This comment is off the topic of the article above and has been moved here. - Mr. Blue MauMau, Moderator
Which the IFA opposes with great vigor while franchisees support the legislation....
Ms. Dina Dwyer-Owens says, "We all need to continue to write, call and have meetings with our representatives to let them know that this is not the time to raise taxes."
This seems like a red herring. In my Google search, I don't see any news on plans by the federal government to raise taxes. They seem to be content with printing money.
Cash-strapped States, who cannot print money, are hotly debating whether to raise taxes. The Wall Street Journal reports yesterday that California's Governor Schwarzenegger has no plans to raise taxes. And on Tuesday New York City Mayor Bloomberg vowed not to raise taxes, but city layoffs likely.
I'm deciphering between the lines but it is possible she is thinking that raising taxes is an issue because she is convinced that all small businesses will pay higher taxes if one of the health care bills pass both chambers.
What Ms. Dwyer-Owens is referring to are the multiple tax cuts enacted in 2001 and 2003 to stimulate the economy after 9/11. They are all set to expire at the end of 2010. The Obama Adminsitration and Congress enacted a budget blueprint and annual spending bills that allow for these tax cuts to expire. Any increases related to the health care bill WILL BE ON TOP of these expiring tax cuts.
For example, the Cap Gains rate as been at 15% since 2002 and will go back to 20%. Tax rate on dividends will return to 39.6%. Both of these measures will impact how businesses reinvest in their operations and will hurt investors and retirees. The death tax comes back into full force in 2011, at 55%! It will be 0% in 2010. Also, the individual income tax rates will return to pre-2001 levels. So all taxpayers will see some increase.
And this is all going to happen automatically, as these tax cuts are set to expire without any action by Congress or the Administration. Any tax increases or penalties in the health care bills will be ON TOP of these automatic increases.
It relies on reducing waste, fraud and abuse in Medicare, which will never happen and new revenue streams or what are more commonly known as taxes on businesses and individuals.
It will throw many people on to state funded Medicaid, so your state taxes will need to rise. And the biggest fallacy of the plan is that it uses 10 years of tax revenue to pay for a 7 year Health Care Plan.
Don,
My experience is that Ms. Dwyer-Owens is very sincere in her ascertains that there is no problem in franchising. It is understandable that she cannot perceive what is outside of her personal experience and there are several factors that make all humans stay in their comfort zone, especially (Michael) cognitive dissonance.
Franchisors and franchisees share (as all humans do) an almost infinite capacity for self-delusion. Some people profit from those clusters of traits; some do not.
A story:
Q: When, exactly, would a wealthy, +60 hour self-made person who associates only with the same ilk ever have occasion to cross paths with "those people"? As squeegie kids, perhaps.
Franchisors and franchisees live in different worlds and, paradoxically, it is the fear of the unwashed masses that is the primary cultural division.
Les Stewart MBA FranchiseFool :: WikidFranchise
Les do you spend most of your time with aggrieved and failed franchisees?
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