IFA is continuing its industry engagement in California, actively coordinating meetings between franchisees, franchisors and their lawmakers and taking advantage of the time legislators will be spending in their districts.
On May 2, Steve Goble of Annex Brands, Inc. met with Sen. Marty Block (D-39). Emphasizing the franchise business model and Annex Brands’ contributions to San Diego, Goble described the brand and educated Sen. Block on behalf of the franchise industry, while also discussing important public policy concerns such as the minimum wage and its negative impact on small, local franchise business owners.
“With 43 locations, creating 160 jobs and $12 million in economic output in Sen. Block’s district alone, Annex Brands is a franchise network that prides itself on providing more services to more people in more places,” said Goble. A shipping and business service center, Annex Brands is based in San Diego, Calif. with more than 360 independently owned and operated franchise locations throughout the United States.
The importance of franchising in the state, its economic impact and the job opportunities it offers Californians were recognized and well received by Sen. Block. The conversation concentrated on franchising and the business model, but the current issue of minimum wage was also addressed. With the minimum wage set to increase to $10 an hour in 2016, California small-business owners are making adjustments. As Goble described, when the minimum wage rises, so does labor costs. When labor costs rise, you have to account for that additional expenditure from the bottom line. As a small-business owner, that means either raising prices, if the customer will absorb the increase, or having to cut hours, leaving the owner to work longer, harder days.
Goble has been in franchising for more than 20 years and articulated how franchise small-business owners, who put their savings and credit toward business ownership, should be incentivized to grow and expand in the state and contribute to its economic growth. Sen. Block, familiar with the local Postal Annex+, appreciated the number of units, jobs and sales that are generated in his district and state.
Goble summed up the meeting as, “A respectful, thoughtful meeting and a great experience.”
If you would like to participate in this program please contact IFA’s Erica Farage at email@example.com.