Federal Regulations That Impact Sustainable Actions in Franchises

Sustainable practices have become a critical focus for many businesses, including franchises, as they strive to meet both environmental responsibilities and regulatory requirements. The increasing emphasis on sustainability is driven by growing awareness of environmental issues and the need to comply with federal regulations designed to protect the environment.

"The federal government has set standards for the United States to be a leader in the clean energy industry and job market,” said Eric Adler, CEO of Flume Water. “Franchises are closely monitoring potential impacts and strategies that help them meet their targeted benchmarks.”

Here’s a look at some of the key regulations and how they influence sustainable actions within franchises. 

Key Federal Regulations

According to Adler, there are a number of federal regulations that can significantly impact franchises that are aiming to implement sustainable practices. These include:

Clean Air Act (CAA): This act sets standards for air quality to protect public health and the environment. Franchises must ensure that their operations do not contribute to air pollution, necessitating investments in cleaner technologies and processes.

Clean Water Act (CWA): This act regulates discharges of pollutants into the waters of the United States and quality standards for surface waters. Franchises, particularly those in the food and hospitality sectors, must manage wastewater and reduce pollutants to comply with these regulations.

Resource Conservation and Recovery Act (RCRA): This act governs the disposal of solid and hazardous waste. Franchises need to implement waste management programs that reduce, recycle, and properly dispose of waste materials.

“Beyond these federal regulations, franchises must also adhere to various local and city ordinances,” said Adler. “This tends to add another layer of complexity to compliance efforts.”

Challenges and Costs

One of the primary challenges franchises face in complying with these regulations is the cost associated with implementing sustainable practices. Investments in new technologies and processes can be substantial, posing a significant hurdle, especially for new franchises.

“Balancing these costs can be difficult for franchises that are just starting out,” Adler said. 

Additionally, the Federal Trade Commission (FTC) imposes disclosure requirements that can slow the timely implementation of sustainable practices. Franchises must carefully weigh these costs and regulatory requirements with their operational budgets and long-term sustainability goals.

Examples of Sustainable Actions

Despite these challenges, many franchises are successfully adopting sustainable practices that align with federal regulations. Some of the examples provided by Adler include:

Energy Efficiency: “LED lighting and energy-efficient HVAC reduce a carbon footprint that also complies with federal energy standards that may also reduce a franchise's electric costs,” said Adler. These measures comply with federal energy standards and contribute to overall sustainability.

Waste Reduction: “Adding recycling and waste reduction programs will help with federal waste management regulations,” said Adler. Composting and single use plastics are great examples of this.

Sustainable Sourcing: “Ensure your supply chain is from suppliers that adhere to best sustainable practices,” said Adler. Franchises can source materials from suppliers committed to sustainability, thereby supporting broader environmental goals.

Green Building Practices: “Use sustainable materials and sources into your building designs,” said Adler. This can help brands comply with federal sustainability standards and long-term business sustainability goals. 

While federal regulations present challenges, they also offer a framework for franchises to adopt sustainable practices that benefit the environment and their bottom line. By investing in energy efficiency, waste reduction, sustainable sourcing and green building practices, franchises can navigate these regulations effectively and contribute to a more sustainable future. 

For more information on sustainability in franchises, check out these related 1851 articles:

• How Franchise Brands Can Navigate Sustainability
• Eco-Friendly Franchises: 8 Green, Sustainable Businesses
• Top 4 Eco-Friendly Franchise Opportunities for 2024