International Franchise Association

The International Franchise Association is the world's oldest and largest organization representing franchising. Founded in 1960, it is a Washington, DC based trade group and non-profit association that represents a growing membership of more than 1,300 franchise systems, 10,000-plus franchisees and more than 500 firms that supply goods and services to the industry. [http://www.franchise.org]

Its mission is to protect, enhance and promote franchising.

About

The IFA helps to fulfill its mission by advancing the values of integrity, respect, trust, commitment to excellenace, honesty and diversity. Its Code of Ethics is intended to establish a framework for the implementation of best practices in the franchise relationships of IFA members. The Code represents the ideals to which all IFA members agree to subscribe in their franchise relationships. The Code is one component of the IFA’s self-regulation program, which also includes the IFA Ombudsman and revisions to the IFA bylaws that will streamline the enforcement mechanism for the Code. The Code is not intended to anticipate the solution to every challenge that may arise in a franchise relationship, but rather to provide a set of core values that are the basis for the resolution of the challenges that may arise in franchise relationships. Also the Code is not intended to establish standards to be applied by third parties, such as the courts, but to create a framework under which IFA and its members will govern themselves. The IFA’s members believe that adherence to the values expressed in the IFA Code will result in healthy, productive, and mutually beneficial franchise relationships. The Code, like franchising, is dynamic and may be revised to reflect the most current developments in structuring and maintaining franchise relationships. [http://www.franchise.org/industrysecondary.aspx?id=3554]

The IFA promotes the interests of the U.S. franchise industry. The mission of IFA’s Government Relations Department is to preserve and enhance the legislative and regulatory climate for the growth of franchising worldwide by providing services and representation that only IFA can achieve. The Department achieves this by monitoring legislative and regulatory activity, conducting lobbying and grassroots campaigns, participating in national and local coalitions, creating forums and educational tools for experts in the franchising community, and promoting positive relations between franchisors, franchisees, and elected and appointed government officials and employees.

A key activity is hosting the Franchise Appreciation Day, [ [http://franchises.about.com/b/a/000010.htm "about.com" website] ] an annual march on Capitol Hill of more than 500 franchisees, franchisors, and franchise suppliers. Attendees meet with legislators, elected officials and policymakers to exchange ideas about the future of franchising and its impact on the business community. At the event, IFA members celebrate the winnders of the Franchisee of the Year Award.

The IFA promotes membership through a yearly convention which provides educational, networking, and procurement opportunities for franchisors, franchisees, and industry suppliers. The 2008 IFA Convention took place in Orlando, Fla.

Educational programs offered by the IFA Educational Foundation include a certification program for industry executives known as the CFE (Certified Franchise Executive) Program, which is entirely devoted to continuing education in the franchising field. The IFA also offers programs for veterans [ [http://www.franchise.org/Franchise-News-Detail.aspx?id=31280 "International Franchise Association" website] ] and minorities to help foster ownership by veterans and minorities. The IFA also provides tools on its Web site [https://www.franchise.org] to help prospective franchisees learn the basics of franchising and how to get started.

Franching Provides Significant Economic Impact

The U.S. franchise industry contributes significantly to the U.S. economy. [http://buildingopportunity.com] To show case this impact, the IFA Educational Foundation released the second edition of an economic impact study in March 2008. Prepared by PricewaterhouseCoopers, [http://www.pwc.com/the report] it documents the growth of the franchising industry from 2001 to 2005. The report informed the basis for the IFA awareness campaign to highlight the association's new theme: Franchising. Building Local Businesses, One Opportunity at a Time. [http://www.franchise.org/Franchise-News-Detail.aspx?id=38776]

The study [https://buildingopportunity.com] outlines:

What Happens in Franchised Businesses

• 909,253 establishments (those owned by franchisees and franchisors)• 3.3 percent of all small businesses• 11 million jobs, 8.1 percent of all private sector jobs • $278.6 billion payroll, 5.3 percent of all private sector payroll• $880.9 billion, 4.4 percent of total U.S. private-sector economy

What Happens Because of Franchised Businesses (Indirect impact)

• 20.9 million jobs, 15.3 percent of all private-sector jobs• $660.9 billion payroll, 12.5 percent of all private-sector payroll• $2.3 trillion, 11.4 percent of private sector economy

Direct Employment by Economic Sector

Franchised businesses provided more jobs -- 11,029,000 -- in 2005 than many other economic sectors including:

Durable Goods Manufacturing – 8,955,000

Financial Activities – 8,153,000

Construction – 7,336,000

Franchised Business Growth

• From 2001 to 2005 the franchising sector grew at a faster pace than many other sectors of the U.S. economy. Direct economic output expanded by over 41 percent from $625 billion to $881 billion, while economic output of other businesses grew by 26 percent, from $16 trillion to $20.1 trillion.

• Employment generated by franchised businesses grew by 12.6 percent, from 9.79 million to 11 million, compared to 3.5 percent for all businesses, from 132 million to 136.7 million.

• Payroll generated by franchised businesses grew 21.6 percent compared to 15.4% for all businesses.

• Franchised establishments grew by 18.5 percent compared to 15.9 percent for establishments created by all businesses.

Franchising in the States

• Franchised businesses provided employment for at least 10 percent of the state’s private sector workforce in every state except New York. The average per state is 15.3%.

• Jobs and payrolls in franchised businesses were greatest in California, Texas, Florida, and Illinois.

• Franchising accounted for the largest share of state payrolls in Nevada, Arizona, and Florida.

References

External links

* [http://www.franchise.org Official Site]
*Economic Impact Study of Franchised Businesses [http://www.buildingopportunity.com]
* [http://www.ftc.gov/os/comments/franrulestaffrpt/EREG-000001.pdf Federal Trade Commission website]
* [http://waysandmeans.house.gov/hearings.asp?formmode=view&id=1007 U.S. House of Representatives Committee on Ways and Means Website]

Related

*Franchise Consulting
* Franchising [http://en.wikipedia.org/wiki/Franchising]