Franchises To Face Many Challenges In ’08

Nation’s Restaurant News:

Matt Shay has been president of the International Franchise Association since 2005, but his tenure with the Washington, D.C.-based group goes back to 1993 when he joined the IFA’s government affairs department. Shay, an attorney by training, recently said that he fears his 1,000 franchisor members and 8,000 franchisee members—representing 75 different industries, including foodservice—will face an uncommonly challenging year in 2008.

What federal legislation should franchisors be worried about?

One would think that with major issues facing franchising, such as immigration reform, the lack of affordable health care and the prospect of a softening economy, legislators would be eager to solve some of these pressing problems and shy away from creating additional burdens. But 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.

Why? Read on…