Three ways Trump is bringing America an economic “golden age”

As he prepares to take office, President-elect Donald Trump has outlined a bold goal to restore pre-pandemic economic growth rates and “America’s Golden Age.” After four years of being told the economy was in better shape than our wallets were being damaged, this is a welcome change of direction.

To achieve this goal, the new administration will need the private sector — something that has not only been ignored in the Biden era, but whose regulatory agenda is entirely detrimental to most industry concerns. The franchise industry I represent includes 800,000 small businesses serving 9 million workers and is ready to serve as a resource to the Trump Administration.

Franchise plays a starring role in the 2024 election, much like Trump did behind the fryer at a Pennsylvania McDonald’s. While franchising is often food-related, the majority of franchises (more than 6 in 10) are in other industries, including hotels, salons, fitness, pet care, and more.

Experts sound alarm over ‘definite shift’ underway in corporate America

Even after several punishing attacks on franchising by the Biden administration, the franchise industry is still expected to grow 4% this year, compared with the overall economy’s 2.7% growth.

As the federal government’s philosophy shifts, the opportunity is ripe to capitalize on the franchise’s animal spirits. The Trump administration can take the following three steps to boost economic growth:

1. Make the Trump Joint Employer Standard into law

There is no more important federal priority for franchising than clarifying joint employer standards. The entire model depends on the independence between the franchisor (the brand) and its individual franchisees. The former provides the concept, framework and branding to the latter, who are free to run their own businesses in exchange for agreed-upon fees and adhering to the brand standards consumers expect, whether in Palm Beach or Parsippany.

In 2023, the Biden administration’s National Labor Relations Board attempted to reverse the 2020 Trump joint employer standards and eliminate autonomy between franchisors and franchisees. As the name suggests, the goal is to hold the franchisor accountable for the franchisee’s employees in order to increase legal liability and facilitate unionization.

Thankfully, a Trump-appointed Texas federal judge dismissed Biden’s overreach, but after four changes to the rule over the past decade, franchises need a permanent joint employment standard that will be Trump’s codified definition. Business owners can’t plan when the regulatory environment is always changing with whoever is in the White House. They want certainty.

2. Reauthorize Trump’s tax cuts

In 2017, Congress passed the Tax Cuts and Jobs Act (TCJA), commonly known as the Trump tax cuts. Contrary to opponents’ suggestions for “tax cuts for the rich,” these policies became a lifeline for small business owners and helped the economy reach new highs before the COVID-19 pandemic. But if no action is taken, they will all expire at the end of 2025.

A particularly important component of the Trump tax cuts is Section 199A, which allows a 20% deduction on qualified income for pass-through businesses. Since most franchise businesses are structured as pass-through entities, 199A levels the playing field between small businesses and larger corporations, which already enjoy a range of tax breaks.

To avoid a last-minute “fiscal cliff” such as the recent showdown over government funding, reauthorizing tax cuts should be prioritized at the start of the new year. Not only would this action provide much-needed certainty to small business owners, but it would also send a clear message: The days of postponing important actions until the last minute are over.

3. Rectify Ship at the Federal Trade Commission (FTC)

Before Biden appointed Lina Khan to lead the Federal Trade Commission (FTC) in 2021, most Americans had never heard of the agency, and for good reason. Created a century ago to ensure a competitive business environment and protect consumers, the FTC evolved under Khan into a hyper-aggressive agency that stretched beyond its authority.

Federal Trade Commission Chairwoman Lena Khan has been harshly criticized by the business community for her aggressive approach. FILE: Khan testifies before the House Judiciary Committee at the Rayburn House Office Building on Capitol Hill in Washington, DC, July 13, 2023. (Chip Somodevilla/Getty Images)

Instead of standing up for consumers, Khan stood up to the business community. She launched numerous lawsuits and investigations, forcing the industry to spend valuable time and resources fending off government regulators instead of growing business.

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In 2023, Khan launched a sweeping request for information against the franchise aimed at eliciting negative comments, then extended it in the summer of 2024, but at that time she didn’t get the results she expected.

Trump named Andrew Ferguson as Khan’s successor, and not too soon. There are already some promising signs that the tide is turning. The highly anticipated “junk fee” rule announced by the Federal Trade Commission is narrower than the original version.

Business owners can’t plan when the regulatory environment is always changing with whoever is in the White House. They want certainty.

Achieving “America’s Golden Age” won’t be easy, but that shouldn’t stop us.

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America has not become the envy of the world by settling for less. We failed to heed President John F. Kennedy’s call for a moon landing in the 1960s, or President Ronald Reagan’s small-scale efforts to “tear down the wall” in the 1980s. mission.

To achieve 4% economic growth, everyone needs to work together. The franchise community is ready and willing to do our part.