IFA President Says Franchisors Face Challenges in '08

Matt Shay, the president of a Washington D.C.-based lobby group, the International Franchise Association, gives an interview to Nation's Restaurant News on legislative concerns in 2008. His two major concerns center around a weakening of the ability of franchisors to enforce arbitration on franchisees and immigration reform.

NRN: What federal legislation should franchisors be worried about?

After the IFA stressed some years ago that franchising was not an industry, Shay now describes it as a franchising industry. Says Mr. Shay, "The introduction of a bill that would amend the Federal Arbitration Act threatens to inflict serious harm on the franchising industry if it becomes law."

Representing some 1,000 franchisors and supposedly 8,000 franchisee members, Shay elaborates, "The so-called Arbitration Fairness Act, which would deny franchise companies (franchisors) the right to enforce arbitration agreements (with franchisees) if they’re entered before an actual dispute arises."

NRN: Do you think immigration reform will get back on track this year?

Shay stresses that franchisees need immigrant workers. He declares, "There just aren’t enough workers to fill job openings. Even if the economy softens, as some are predicting, it will continue to be a challenge for franchises, especially those in the hospitality and service industries, to meet their employment needs. Immigration reform is among the most pressing issues that face the franchising industry today."

See Nation's Restaurant News to read the original article