To support small businesses in a tough economy, Congress must support franchising

As Congress prepares this year to tackle economic challenges, we need to consider how to shore up the areas that drive jobs and economic output, and the various services we need to keep our local economies vibrant and active.

Franchising cannot be overlooked as an essential sector to keeping our economy healthy. Franchising was key to recovery from the pandemic — creating jobs and delivering economic growth. It provides unparalleled access to business ownership to people from diverse backgrounds, including women, people of color and veterans. The franchise model builds generational wealth in areas of the country that need it most, providing access to capital, training, managerial assistance and a system of support that helps many Americans overcome the numerous barriers to owning their own business.

However, this powerful business model is misunderstood by many, especially our nation’s policymakers. Often mistaken as big business because of the brand name on their door, franchises are in fact local, often family-run businesses. So many are small businesses.

We want to change this misconception with the bipartisan Congressional Franchise Caucus — to bridge the gap between lawmakers in Washington and franchise owners back in our congressional districts across the nation. The bipartisan caucus formed to be a voice for franchise businesses that encompass 300 different sectors of the American economy, from hair care to lawn care, to fitness centers, hotels, hamburgers and much more. 

The International Franchise Association’s 2023 Franchising Economic Outlook projects that this year, the number of franchise establishments will grow to 805,000, supporting more than 8.7 million direct jobs and producing $860.1 billion of economic output for the U.S. economy — that’s 3 percent of U.S. gross domestic product.

As Americans contend with a difficult economy, Washington must look for ways to help small businesses, not hinder them. Congress has an incredible opportunity to pass legislation that supports franchises and treats them as the small businesses they are — the backbone of the American economy.

Increasingly, franchises do not receive the support they should because of their brand name, but lawmakers must not forget that these are small businesses too, owned and operated by their neighbors and friends. Everyday Americans trying to make a living while serving their communities and employees.

At a recent stop of the International Franchise Association’s Open for Opportunity Roadshow, Sam Sorour shared his story about being a first-generation American, first-generation college graduate, and first-generation Dunkin’ franchisee. Working every night when he was in college to pay his tuition, Sam learned firsthand the value of a strong work ethic, the power of the franchise model and how that combination can help his employees accomplish more in their career than just a paycheck.

He also has had to make tough choices during times of economic recession. Sam shared how inspiring it was to see everyone come together to help franchises like his survive when the pandemic impacted their operations. He thought he would lose everything, but the collective effort — from government and the business community — allowed businesses to stay open, keep people employed and continue serving our communities.

One out of every three franchise owners say they wouldn’t own a small business without the franchise business model. We have a duty to enact policies that allow small businesses owners like Sam to grow, flourish and remain a vital component of local economies — while encouraging our fellow lawmakers to avoid policies that will stack the deck against them.

Supporting the franchise model is supporting small business, and we need to fight so that hard-working Americans can achieve their American Dream.

Reps. Tony Cardenas, Kevin Hern, Josh Gottheimer and Beth Van Duyne are co-chairs of the Congressional Franchise Caucus.