Notes on the History of Franchise Legislation

Every decade or so the United States sees attempts to

level the playing field for franchisees and franchisors. One

of the most interesting occurred in the early 1990s when

the State of Iowa passed legislation. McDonald's and a few

other large franchised brands stopped granting franchises 
or rewrites while the law was on the books. This was back

when McDonald's Operators thought opening new stores

was a good thing so a number actively helped McDonald's 
lobby against the bill.

More Iowa details are HERE

It would be interesting to see franchisors try that tactic in a
populous state like California. However, with out-migration 

California may someday have the population of Iowa.

The primary opponent of any franchisee friendly legislation 
at a Federal or State level is the IFA ( International Franchise 
Association.) In fact, this is the main reason for the IFA's 
existence. The big franchisor's lawyers and lobbyists work 
hand in hand to keep the playing field tilted in their direction.

Up until 1997 the IFA did not allow franchisees as members

but brought in a few for appearances and occasionally they'll 
let a franchisee serve in a "leadership" role.

A McDonald's Operator currently serves as "chairman".

The IFA BOD is HERE

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