By Kay Scrimger
February 2, 2009

USCM Past President Palmer Chairs First Meeting of Franchising and Small Business in Cities Task Force

By Kay Scrimger

Chaired by Conference of Mayors Past President Trenton (NJ) Mayor Douglas H. Palmer, the first meeting of the Conference's Task Force on Franchising and Small Businesses in Cities took place January 19 at the 77th Winter Meeting of the Conference of Mayors.

Two International Franchise Association (IFA) officials spoke to the mayors: John Reynolds, Vice President of New Business Development, and President of the IFA Educational Foundation; and M. Troy Flanagan, IFA Director of Government Relations. They discussed the "bad news/good news story" of franchises in the economic downturn currently affecting the U.S. economy.

Reynolds noted that the bad news included the sharp downturn in jobs and the credit crisis affecting all small businesses. The good news, he said, is that franchise businesses have outperformed other parts of the economy, realizing growth twice the rate of other businesses and a 40 percent higher payroll.

The IFA officials and task force mayors discussed a number of issues, including mayors' interest in 1) better understanding siting decisions of franchise corporations; 2) encouraging franchise businesses to take more interest and a stronger role in the communities in which they are located; and 3) bringing about closer cooperation between the International Franchise Association and the Conference of Mayors in the future.

Palmer noted that discussion of these and related issues are exactly why the Task Force has been formed. He said that his goal as Task Force Chair is to encourage closer cooperation between the Conference of Mayors and the International Franchise Association and to plan ahead to the Conference of Mayors' June Meeting in Providence, where these and other issues will be discussed.