Survey for Franchisees on the Impact of Inflationary Pressures on Franchised Businesses

July 21, 2022

Blog Post

The International Franchise Association (IFA) and FRANdata, a franchise market research company, are conducting a first-of-its-kind survey for franchisees on the impact of inflationary pressures on franchised businesses. All U.S. franchise owners are asked to participate. These critical findings will provide accurate, detailed data on the specific ways inflation is affecting the franchise sector. Franchise owners are facing a number of different headwinds in the second half of 2022 – rising wages, higher commodity costs, higher interest rates, slowing sales due to discretionary consumer spending, and employee turnover.

IFA needs input from franchisees across the country to ensure the most comprehensive data sample and information from a variety of industries, geographic areas, brands, and sizes. The survey will only take a few minutes to complete and participation is strictly confidential and anonymous. The survey will be open through the end of August. McDonald Hopkins will post the results of the survey once they are published.

Take the franchisee survey by clicking on this link: IFA Survey - Inflationary Pressures (alchemer.com)

This decision only adds to to the growing circuit split on the application of the “hypothetical test” or the “actual test” in bankruptcy, and may lead a higher court to consider the issue. For franchisees in the Sixth Circuit who desire to reorganize in bankruptcy, however, this decision provides clarity about which test parties may use to determine if a contract could be assumed.

This ruling reveals the limits to the rejection power of the Bankruptcy Code. While a bankrupt franchisee can use bankruptcy to unburden itself of future monetary liabilities due to a franchisor, such franchisee cannot completely rid itself of those bargained-for equitable remedies that are there to protect the integrity of the brand and the confidential, proprietary information that the franchise arrangement is designed to protect.

Survey for Franchisees on the Impact of Inflationary Pressures on Franchised Businesses

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