Federal bailout for franchisors?

The RESTART Act would establish a new federal loan program, the proceeds of which can be used for franchise fees.[i] The American Hospitality and Lodging Association (AHLA) is supporting the bill.[ii]

Small businesses are the ones that really need support—not franchisors. See the article we wrote showing the big brands had over $11 billion in combined liquidity in March and April.

If passed, the legislation would help franchisors justify charging the same fees as they did before COVID-19. Instead, franchisors should reduce fees until the industry makes a full recovery.

Small businesses and hotel franchisees who are concerned about unfair franchise fees can contact AHLA about withdrawing their support.



[i] Text: S.3814 — 116th Congress (2019-2020). Section 3.g.2.I.. https://www.congress.gov/bill/116th-congress/senate-bill/3814/text#id8E2724015E3D40E69A2F48AC7FC43839.
[ii] Senator Todd Young’s website, “Support for the RESTART Act,” accessed 8/10/20. https://www.young.senate.gov/imo/media/doc/RESTART%20Act%20-%20List%20of%20supporters%20FINAL.pdf.