3 ways Trump can create an economic “golden age” for America

As he prepares to take office, President-elect Donald Trump has outlined an audacious goal of returning to economic growth and “the golden age of america.” After four years of being told the economy was better than the way it hit our wallets, it’s a welcome change of direction.

To achieve this goal, the new administration will need the private sector — something that was not only largely ignored in the Biden era, but whose regulatory agenda was hostile to the concerns of most industries. The franchise sector that I represent, which includes 800,000 small businesses supporting 9 million workers, is ready to go to work as a resource for the Trump administration.

Franchising has played a major role in the 2024 election, no more so than Trump behind the fryer at a Pennsylvania McDonald’s. While franchising is often associated with food, the majority (more than six in ten) operate in other industries, ranging from hotels, salons, fitness centers, pet care and more.

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Even after several punitive attacks on franchising by the Biden administration, the franchise sector is projected to grow 4% this year, compared to 2.7% for the economy as a whole.

President-elect Donald Trump on October 20, 2024. works at a car dealership during a campaign photo at a McDonald’s restaurant in Feasterville-Trevose, Pennsylvania. Even this brief stint in fast food is a powerful reminder of the franchisee’s importance to the U.S. economy. (Win McNamee/Getty Images)

With the change in federal government philosophy came opportunities for liquor franchising. Here are three things the Trump administration can do to increase its economic growth:

1. Make Trump’s joint employer standard law

There is no greater federal priority for franchising clarification of the joint employer standard. The whole model depends on the independence of the franchisor (brand) and individual franchisees. The former provides the concept, framework and branding for the latter, which is free to run its own business, in exchange for a negotiated fee and upholding the brand standards consumers expect, whether in Palm Beach or Parsippany.

In 2023, the Biden administration’s National Labor Relations Board tried to cancel 2020 The Trump Joint Employer Standard and eliminate autonomy between franchisors and franchisees. As the name suggests, the goal was to bring the franchisor closer to the franchisee’s employees in order to increase legal liability and facilitate unionization.

Fortunately, a Trump-appointed federal judge in Texas struck down Biden’s overreach, but after four changes to the rule over the past decade, franchising requires a permanent co-employment standard that codifies Trump’s definition. Business owners can’t plan when the regulatory climate is always changing with the occupant of the White House. They need certainty.

2. Re-authorize Trump’s tax cuts

In 2017, Congress passed the Tax Cuts and Jobs Act (TCJA), colloquially known as Trump’s tax cuts. Contrary to opponents’ “tax cuts for the rich,” the policy has been a lifesaver for small business owners, helping to lift the economy to new highs before the COVID-19 pandemic. However, without action, they will all expire at the end of 2025.

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

To prevent any last-minute “budget cliffhangers” like the recent public funding showdown, the priority for the new year should be to reauthorize the tax cuts. Not only will this promotion give small business owners the confidence they need, but it will also send a clear message that the days of putting off important actions until the last minute are over.

3. Direct ship to FTC

Before Biden appointed Lina Khan to head 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 under Khan has morphed into an ultra-aggressive agency that has overstepped its authority.

Federal Trade Commission Chairwoman Lina Hahn has come under fire from the business community for her aggressive approach. FILE: Khan testifies before the House Judiciary Committee at the Rayburn House office building on Capitol Hill on July 13, 2023. in Washington, DC. (Chip Somodevilla/Getty Images)

Instead of advocating for consumers, Khan has drawn opposition from the business community. She started countless lawsuits and investigations, forcing the industry to spend valuable time and resources fighting government regulators rather than growing its business.

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In 2023, Khan launched a large-scale request for information on the franchise aimed at eliciting negative comments, then extended it in the summer of 2024 when she did not get the results she wanted.

Trump has named Andrew Ferguson as his replacement for Khan, and not a moment too soon. There are already encouraging signs that the situation is turning around. The long-awaited “pay for trash” rule announced by the FTC was narrower than the original iteration.

Business owners can’t plan when the regulatory climate is always changing with the occupant of the White House. They need certainty.

Achieving America’s Golden Age will not be easy, but that should not deter us.

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America did not become the envy of the world by settling for less. We didn’t heed President John F. Kennedy’s call to walk on the moon in the 1960s or President Ronald Reagan’s mission to “tear down that wall” in the 1980s by going small.

Achieving 4% economic growth will require everyone rowing in the same direction. The franchise community is ready to contribute.