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Weekly UpdatesThe Facts
Florida--Named on Easter 1513 by Spanish explorer Juan Ponce de Leon for "Pascua Florida," meaning "Flowery Easter"
Capital--Tallahassee
Nickname--The Sunshine State
27th state, entering the union on March 3, 1845
Population--15.9 million, making it the fourth most populous
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Politics
Gov. Charlie Crist, elected in 2006
Florida Legislature
State Senate--26 Republicans, 14 Democrats
State House of Representatives--76 Republicans, 44 Democrats
Congressional Delegation--15 Republican and 10 Democratic members of the U.S. House; one Democrat (Bill Nelson) and one Republican (Mel Martinez) U.S. Senator
Franchise Facts
Franchised Businesses: 61,649
Employment in Franchising: 728,200
Economic Output of Franchising: $56.1 billion
Contact Information:
(Sale of Business Opportunities Act)
Florida Dept. of Agriculture and Consumer Services
Division of Consumer Services
Terry Rhodes Building
2005 Apalachee Parkway
Tallahassee, Fla. 32399-6500
Phone: 850-488-2221
Recent years have seen no new constraints on the franchise relationship in Florida. But that doesn't mean there have been no efforts by the legislature to insert itself into the franchise agreement. Florida policymakers have also delved into other issues that impact franchised businesses, such as health care, menu labeling and direct mail marketing.
During the 2008 session a bill requiring Florida be the venue for certain actions brought by franchisors against franchisees was filed in the both the Florida House and Senate. This venue mandate would inhibit the efficient and effective dispute resolution processes already agreed upon throughout various franchise systems and the International Franchise Association conveyed these concerns to the bills' sponsors and key committee chairman. The bills ultimately were not enacted and were not reintroduced in 2009, but IFA continues to monitor the threat due to its broad impact on franchise agreements.
Following the nationwide policy trend, lawmakers considered measures during the 2009 session that would impose an inflexible menu labeling mandate on restaurants. The bills would have required restaurants that are part of a chain of five or more units of the same brand within the state to post calorie content on the menu or menu board next to the item. Aside from the state invading the valuable "real estate" of restaurant menus, mandating only calories to be posted does not provide a diner with sufficient information to make an informed decision. Fortunately the bills were not enacted and the threat of local level ordinances does not exist, thanks to a state law pre-empting local mandates in this area.
The Florida House and Senate this year considered bills establishing a statewide "do not mail" registry, seeking to curb the use of direct mail. More than 300,000 American small businesses rely on advertising mail to reach potential customers. For franchised businesses such as local florists, mechanics, landscapers and coffee shops, advertising mail is often the only affordable and effective means of advertising available. IFA worked with affected members companies and industry allies to educate lawmakers to the existing free registry options already available to consumers. The bills subsequently were not enacted. As with menu labeling, "do not mail" registry bills are a nationwide trend not likely to cease anytime soon.
While Florida has proven to be a friendlier state for business than many others, there are reasons to keep a close eye on Tallahassee. Florida is one of 15 states with legislative term limits and, thus, has a legislature comprised of officials often unfamiliar with previous policy debates. For instance, the key legislators in the mandatory venue debate during the 2008 session, once apprised of the bills' ramifications on business, seemed to lose interest in advancing the proposals. However, those folks will have been forced out of their current jobs in just a few years, only to be replaced by a new crop of eager politicians looking for hot-button issues to raise their profile. Florida has also shown a willingness to consider, and at one point impose, new taxes on services. The most recent threat was during the constitutional reform debate of 2008, which considered a "tax swap" scheme that would have forced the legislature to fill budget gaps with taxes on many services offered by franchised businesses. That effort failed, but with no clear path out of the current recession the threat remains very real.
Troy Flanagan is director of state government relations for the International Franchise Association. He can be reached at tflanagan@franchise. org or 202-662-0792.
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