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8/13/2019 Ifa-chamber Survey Findings
1/23
1INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
BillMcInturff,Partner
MicahRoberts,
Vice
President
Presentationof
Findings
from
NationalResearchConducted
AmongBusiness
Decision
Makers
September October2013
8/13/2019 Ifa-chamber Survey Findings
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2INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
Executive
SummaryOnbehalfoftheInternationalFranchiseAssociation(IFA)andtheU.S.
ChamberofCommerce,PublicOpinionStrategiesconductedsurveysof
208decision
makers
in
franchise
owned
businesses
and
206
decision
makersinnonfranchisebusinesseswith40to500employeesaboutthe
impactoftheAffordableCareAct(ACA)ontheirbusinesses.
Together,franchise
owned
and
non
franchise
businesses
with
40
to
500
employeesaccountforover42millionjobs,whichisover25%ofall
employedAmericans.
Overall,thedecisionmakersreportthattheACAhasalreadyresultedin
highercosts andfewerfulltimepositions.Whenfullyimplementedin
2015,thesurveyresultssuggesttheACAemployermandatewillresult
infeweremployersprovidinghealthcare.
8/13/2019 Ifa-chamber Survey Findings
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3INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
Executive
Summary
(cont.) Sixtyfourpercent(64%)ofbusinessdecisionmakersinfranchisee
ownedbusinessesand53%innonfranchiseeownedbusinessesbelieve
theACAwillhaveanegativeimpactontheirbusinesses.
Manybusinessesarealreadyseeingtheirhealthcarecostsincreasing
becauseofthelaw. Tocope,31%offranchiseand12%ofnonfranchise
businesseshave
already
reduced
worker
hours,a
full
year
before
the
employermandategoesintoeffect.
Additionally,27%offranchise and12%ofnonfranchisebusinesses
have
already
replaced
full
time
workers with
part
time
employees.
Othercostcontrolmethodscitedbysurveyparticipantsincludedhiring
onlytemporaryhelpandcuttingbenefitsandbonuses.
8/13/2019 Ifa-chamber Survey Findings
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4INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
Executive
Summary
(cont.) Amongbusinesseswith40to70employees, 59%offranchiseand52%
ofnonfranchisebusinesses plantomakepersonnelchangestostay
belowthe
50
full
time
equivalent
employee
threshold.
This
accounts
for
23%ofallfranchiseand10%ofallnonfranchisedecisionmakers
surveyed.
Largechunks
of
decision
makers
say
the
employer
mandate
will
mean
theywilldrophealthcoverage,optinginsteadtopayapenaltyforeach
employee.Ineffect,amongthissegmentofbusinesses,theemployer
mandatewillmorethandoublethepercentageoffranchiseowned
businessesand
more
than
triple
the
percentage
of
non
franchise
businessesthatwillnotofferhealthcoverage.
8/13/2019 Ifa-chamber Survey Findings
5/23
8/13/2019 Ifa-chamber Survey Findings
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6INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
In
an
Open
ended
QuestionSummaryofResponsesAmongthe64%ofFranchiseBusinessand53%ofNonFranchise
BusinessDecisionmakersWhoSaidtheLawisHavingaNegativeImpactonTheirBusinesses
Decisionmakersfrombothaudiences,franchiseandnonfranchise,toldustheyaremost
concernedwiththecostsofhealthcoverageandcompliance.Theyfeelthelawwillproveto
beadisincentivefortheircompaniestogrowandwilldoquitetheoppositeforcethemto
cutstaffandhours,getmoreoutoffewerfulltimeworkers,andcauseunduestrainontheir
operations.
Especiallyamongdecisionmakersfromfranchiseeownedbusinesses,thereisaconcernfor
thehourlyworkerswhowillbehurtmostbythedownwardpressurethelawputsonnon
salaryworkers.AsoneQuickServeRestaurantownerinKansassaid:
Theworkforce,thebackboneofthepeoplehere,arethehourlypeople.Theyrelyonaforty
hourweek.Youtaketenhoursaway,thatsgoingtokillpeople.ButIguaranteeyouthat
morecompaniesandcorporationswilldojustthatbecausethatstheloopholethatisin
there.Itsnotawinwin.Havingeveryoneinsuredisagreatidea,butthisisthewrongway
of
going
about
doing
it.
8/13/2019 Ifa-chamber Survey Findings
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7INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
ManyBusinessesAreAlreadySeeingTheirHealthCare
CostsIncreasing
Because
of
the
Law.
Have your costs for providing health care benefits to your employees increased or decreased in the past year or so, or have they
not changed? Have your costs for providing health care benefits to your employees increased because of the new health care law,
for some other reason, or both?
Franchise(68%) NonFranchise(91%)
Costs
increasing
because ofthelaw
AmongThoseCompaniesWhoCurrentlyOfferHealthCareBenefits
8/13/2019 Ifa-chamber Survey Findings
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8INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
EvenwiththeEmployerMandateaYearAway,BusinessesAre
Reducing
Hours
and
Replacing
Full
time
Workers
with
Part
time
Workers.
%Yes,BecauseofHealthCareLaw
31%
15%
27%
12% 12% 12%
Reducedworker
hours Reduced
number
of
staff Replaced
full
time
employeeswithparttime
workersFranchise NonFranchise
Have you reduced the number of hours your
employees work in the past year or so?
Have you reduced the number of people you
employ in the past year or so?
Have you replaced fulltime workers with
parttime workers in the past year or so?
8/13/2019 Ifa-chamber Survey Findings
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9INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
AMajority ofDecisionmakerswith4070EmployeesSay
TheyWill
Make
Personnel
Decisions
to
Stay
Below
the
50
FulltimeEquivalentEmployeeThreshold.
59%52%
35%
48%
Franchiseownedbusinesses
with40
70
employees
(23%)
NonFranchiseownedbusinesses
with40
70
employees
(10%)TotalLikely TotalNotLikely
Looking forward to 2015 when the employer mandate penalty will be enforced, how likely do you think it is that your company will make
personnel decisions to keep your workforce below the threshold of fifty (50) fulltime equivalent employees and avoid the requirements and
penalties associated with the new health care law?
AmongBusinessesWith4070Employees
8/13/2019 Ifa-chamber Survey Findings
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10INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
Decisionmakersinbusinessesemploying4070people
have
a
very
specific
set
of
actions planned
for
2015,
when
theemployermandategoesintoeffect:
Cutfulltimestaffandcuthoursofparttime
workers
Hireonlytemporaryhelporparttimeemployees
andstrictlymonitorhours
Stopmakingeffortstogrowandexpandbusiness
Cutbenefitsandbonuses
In
An
Open
ended
Question
8/13/2019 Ifa-chamber Survey Findings
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11INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
AmongBusinessesOfferingHealthCoverage,LargeChunksofDecisionmakers
saythe
Employer
Mandate
Will
Mean
They
Will
Drop
Heath
Coverage.
Looking forward to 2015 when the employer mandate penalty will be enforced, how likely do you think it is that your company would stop
offering health insurance benefits to your employees and instead potentially pay a penalty of $2,000 a year per employee for employees
covered by a health plan available through an exchange.
32%
28% 60%
9%
28% 37%
AmongFranchiseBusinesses AmongNonFranchiseBusinesses
Currentlynotprovidingcoverage
Willdrop
coveragein
2015
TotalNot
Providing
Coveragein
2015
Currentlynot
providingcoverage
Willdrop
coveragein
2015
TotalNot
Providing
Coveragein
2015
8/13/2019 Ifa-chamber Survey Findings
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12INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
PUBLICOPINIONSTRATEGIES
214
N.
Fayette
St.Alexandria,VA22314
BillMcInturff,Partner
bill@pos.org703.836.7655
MicahRoberts,VicePresident
micah@pos.org703.836.7655
8/13/2019 Ifa-chamber Survey Findings
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13INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
8/13/2019 Ifa-chamber Survey Findings
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14INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
MethodologyOnbehalfoftheInternationalFranchiseAssociationandtheUS
ChamberofCommerce,fromSeptember25throughOctober18,
PublicOpinionStrategiesconductedconcurrentsurveysoftwouniqueaudiences:
208decision
makers
in
multi
unit
and
single
unit
franchisee
ownedbusinesseswith40500employees.
206decisionmakersinnonfranchisebusinessesthatemployin
therange
of
40
500
employees.
Respondentswerereachedbyeitherphoneoremail.
8/13/2019 Ifa-chamber Survey Findings
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15INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
ThisSurvey/
Franchise
ThisSurvey/
NonFranchise
Government
andOtherData
Percent
of
Respondents Compared
to
FemaleOwned Businesses1 3 3 5 2 9PercentofRespondentsComparedto
MinorityOwnedBusinesses2 1 4 1 1 1 5Northeast
3 2 2 3 2 2Midwest3 2 4 2 1 2 3South3 3 4 3 2 3 2West3 2 2 2 4 2 4
ComparingThisSurveytoGovernmentData
1 NationalWomen'sBusinessCouncil,http://www.nwbc.gov/facts2 USCensusBureau,http://www2.census.gov/econ/sbo/07/pums/2007_sbo_pums_users_guide.pdf3 USCensusBureau,http://www2.census.gov/econ/susb/data/2006/us_state_totals_2006.xls
ByGender,
Ethnicity,
and
Region
8/13/2019 Ifa-chamber Survey Findings
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16INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
ThisSurvey/
Franchise FDD
FoodRelated2 5 2 5 5AutomotiveProductsandServices 1 1 4Lodging 6 4Services General 6 3Business
Services 4 8
ComparingThisSurveytoFranchiseDisclosure
Document(FDD)
Records
for
Multi
Unit
Owners
1 DatareflectsthepopulationofmultiunitownersbyindustryaccordingtoFRANdata countsbasedonFranchiseDisclosureDocument
records.2 FoodRelatedincludesBakedGoodsEstablishments,FrozenDessertsEstablishments,QuickServeRestaurants,TableFullService/SitDown
Restaurants,andRetailFoodStores.
1
ByIndustry
8/13/2019 Ifa-chamber Survey Findings
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8/13/2019 Ifa-chamber Survey Findings
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18INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
ThisSurvey/
NonFranchise
D&BNon
Franchise(40500 emps.)
40to50 1 1 451to75 1 2 1 376to100 1 2 1 4101to150 2 1 1 4151to500 4 5 4 5
ComparingThisSurveytoDunandBradstreet
(D&B)Small
Business
Records
1 Datareflectsthepopulationofbusinesseswith40500employeesbyindustryaccordingtoSurveySamplingInternationalcountsbasedon
DunandBradstreetrecords.
1
ByCompanyEmployeeSizeRange
8/13/2019 Ifa-chamber Survey Findings
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19INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
ComparingthisSurveytoOtherNationalData
ByPartyIdentification
ThisSurvey/
Franchise
ThisSurvey/
NonFranchise National
Data1
Republican 5 2 4 7 4 8Independent 1 6 2 1 6Democrat 3 3 3 3 5
1 Datashownreflectresultsamong633selfdescribedsmallbusinessownerscollectedaspartofnationallyrepresentativesurveys ofregisteredvoters
conductedbyPublicOpinionStrategiesfrom20112012. Atotalof5,600interviewswereconductedamongregisteredvotersusing bothlandlinesandcell
phonesusingrandomdigitdialing.Thetotalnumberofselfdescribedsmallbusinessownerswas633,or11%oftheinterviewsconducted.
8/13/2019 Ifa-chamber Survey Findings
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20INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
EconomicImpactoftheAudiences
WeSurveyed
Multiunit andsingleunitfranchiseeownedbusinessesthat
employ
40
500
people
account
for
more
than
half
of
all
U.S.
franchiseestablishmentsandemployment. Thesebusinesses
provide4.1millionjobsinover379,000establishments.
Nonfranchisebusinessesthatemploy40500peoplerepresent
abouttwopercent(2%)ofallU.S.businessesbutaccountfor
300,000companiesandover38millionjobs.
Together,thesebusinessesaccountforover42millionjobs,which
isover
25%
of
all
employed
Americans.
1
2
3
1. Source:InternationalFranchiseAssociation
2. Source: SurveySamplingInternationalDunandBradstreetSample.
3. Source:BureauofLaborStatistics
8/13/2019 Ifa-chamber Survey Findings
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21INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
DecisionmakersinTheseBusinessesExpect
TheEconomy
to
Remain
Flat
Over
the
Next
Year
With
OnlyOneinFiveExpectingEconomicExpansion.
In 2014, do you anticipate
18% 22%
52%
66%
26%
12%
Franchise NonFranchise
Economicexpansion Aflateconomy Arecession
8/13/2019 Ifa-chamber Survey Findings
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22INTERNATIONALFRANCHISEASSOCIATION/U.S.CHAMBER OFCOMMERCE
FewerThanOneinFiveDecisionmakersExpectsMoreThanSingle
DigitGrowthinTheirCompanyRevenues.
As you look to 2014, do you project your companys gross revenues to increase or decrease compared to 2013, or will they probably stay
the same?
16%30%
39%
13%
16%
43%
25%
16%
IncreaseMoreThan10% IncreaseLessThan10% StaytheSame Decrease
Franchise
NonFranchise
8/13/2019 Ifa-chamber Survey Findings
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