1851

Franchising has never been more under attack than it is today, said Aziz Hashim, <a href="http://www.franchise.org/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franconnection-2016-franchising-under-attack-must-change-the-narrative-4676" target="_blank" rel="nofollow" target="_blank">International Franchise Association</a> Chairman and CEO of <a href="http://www.nrdcapital.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franconnection-2016-franchising-under-attack-must-change-the-narrative-4676" target="_blank" rel="nofollow" target="_blank">NRD Capital</a>, an Atlanta-based private equity firm, at FranConnection 2016. &#8220;We are being attacked by every sector of the government,&#8221; he said. His speech came on the heels of DOL Overtime Rule that became public this morning, in which IFA responded with a statement, including this from IFA CEO Robert Cresanti: &#8220;Far from &#8216;giving America a raise,&#8217; the new overtime rule will compel many franchise businesses to reduce their managers&#8217; take-home pay simply to comply with the extreme new salary level. The rule is unfair to employees who will need to be reclassified from exempt to non-exempt, and thus effectively demoted. The Administration irresponsibly failed to conduct any economic analysis of this rule&#8217;s impact on a myriad of stakeholders, and millions of employees will experience reduced take-home pay, opportunity and flexibility in the workplace as a consequence of the Administration&#8217;s actions.&#8221; Overtime rules, NLRB rulings and minimum wage hikes will continue to challenge the franchise industry. Part of combatting this in the future is changing the story of franchising, Hashim said. &#8220;At the IFA, we decided to find out what the general public really felt about franchising, knowing that their opinions, if not aligned with franchising reality, will not help to tell the story,&#8221; he said. &#8220;We did focus groups of ordinary Americans; 10-12 Democrats and Republicans &#8211; a very mixed group. We asked them what they thought about franchising, and it was very negative. The American people do not understand anything about our model. Their opinion is that franchisees are agents of franchisors. The name there says McDonald's, so how could it be owned by the family who lives in the town? Their perception is that the franchisee just manages it for McDonald's. This is a problem." &#8220;We were a victim of our own success. If you walk into one of our units you should not know if it is a corporate or a franchisee owned location. Each location should look and feel the same. We succeeded at building this business culture, but now, the American public really doesn&#8217;t know who owns that unit. They think the franchisor owns the unit," Hashim added."Even our own employees don&#8217;t know who they work for. Who do you work for? Popeye&#8217;s they say, not a Popeye&#8217;s owned by a franchisee. We have this massive misperception about our industry that we must correct through education. Changing the narrative of franchising is essential. The public should know that most businesses in their community are owned by family who lives in the community and invested their own money into that brand. If we change the opinions of the public, then, they will understand how these changes can negatively impact their neighbors.&#8221; Hashim said that everyone in the franchise community should help to educate others on their story. &#8220;We are trying to change the narrative through our fund, NRD Capital, but we need more people to help tell the story,&#8221; he said. The IFA launched FAN, <a href="http://www.franchiseactionnetwork.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franconnection-2016-franchising-under-attack-must-change-the-narrative-4676" target="_blank" rel="nofollow" target="_blank">Franchise Action Network</a>, a network of 11,000 franchisees, franchisors and suppliers committed to helping to change the story.

1851 Franchise

Aziz Hashim, International Franchise Association Chairman, believes that overtime rules, NLRB rulings and minimum wage hikes will continue to challenge the franchise industry.

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

FranConnection 2016: Franchising Under Attack, Must Change the Narrative

franconnection-2016-franchising-under-attack-must-change-the-narrative

SweatHouz

SweatHouz SWTHZ Franchise - Hunter and Mallory Mitchem - Franchisee Feature - 1851 Franchise

From Aerospace to Wellness: Hunter Mitchem’s Journey to a SweatHouz Empire

sweathouz-franchise-hunter-mitchem-6g

Onigilly Japanese Kitchen

Onigilly - Low Operating Costs Drive High Returns for Franchisees - 1851 Franchise

Maximize Your ROI: How Onigilly’s Low Operating Costs Drive High Returns for Franchisees

onigilly-franchise-fast-casual-franchise-opportunity

Layne's Chicken Fingers

What Is the Layne’s Franchise Disclosure Document, and What Will I Find in It?

laynes-franchise-disclosure-document

Athletech News: How SWTHZ Delivers on Wellness Demands of All Kinds

swthz-delivers-wellness-demands-contrast-therapy

TruBlue Home Service Ally

Why Protected Territories Matter and How the TruBlue Franchise Delivers

why-protected-territories-matter-and-how-the-trublue-franchise-delivers

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Bed Bath & Beyond - Franchise Expansion - Retail Strategy - 1851 Franchise

Bed Bath & Beyond Launches Franchise Model as Part of Comeback Strategy

bed-bath-beyond-franchise-expansion-retail-strategy

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

U.S. Government Shutdown - Impact on Franchises - 1851 Franchise

Government Shutdown Stalls SBA Loans: How the Shutdown Could Impact Franchises

government-shutdown-impacts-sba-loans-tourism-franchises

Subway Franchisees Resist Expensive Remodel Directives

subway-franchisees-resist-expensive-remodel-directives

The American Franchise Act: What It Means for Franchisors and Franchisees - 1851 Franchise

The American Franchise Act: What It Means for Franchisors and Franchisees

american-franchise-act-joint-employer-standard

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Friendly’s Parent Company Acquired by Multi-Unit Franchisee as More Owners Take the Lead in Brand Acquisitions 

friendlys-parent-company-acquired-by-multi-unit-franchisee-as-more-owners-take-the-lead-in-brand-acquisitions

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Top Education Franchises To Consider for 2025 - 1851 Franchise

Top Education Franchises To Consider Investing In for 2025

top-education-franchises-investment-opportunities

Top Early Childhood Education and Child Care Franchises for 2025 - 1851 Franchise

Top Early Childhood Education and Child Care Franchises for 2025

early-childhood-education-child-care-franchises

Top Arts and Creative Learning Franchises for 2025 - 1851 Franchise

Top Arts and Creative Learning Franchises for 2025

top-arts-creative-learning-franchises

Top Enrichment and Supplemental Education Franchises for 2025

top-enrichment-supplemental-education-franchises

1851 Franchisee Spotlight graphic with photo of Barb Volk and KidStrong logo

Why This Orangetheory Fitness Franchise Owner Is Developing KidStrong Franchises

kidstrong-franchise-owner-barb-volk-2025

FranConnection 2016: Franchising Under Attack, Must Change the Narrative

MORE STORIES LIKE THIS