CFA Headline News

CFA Headline News What is the CFA doing for you?

Registration Open for 2020 CFA National Convention This spring, the franchising community will unite once again for the CFA National Convention at Le Westin hotel in Montreal. From April 4-6, franchise leaders will gather for three days of inspiring education sessions, one-of-a-kind networking opportunities, and celebrations of Canadian franchising and the best it has to offer. For more information, please contact Meredith Lowry at mlowry@cfa.ca, or 416-695-2896, ext. 295. Learn more in our 2020 CFA National Convention preview on page 15 and in the enclosed registration brochure.

Flying to Convention? Get In On the CFA Group Rate (Limited Availability) As the airlines of the 2020 CFA National Convention, Air Canada and Porter Airlines are offering special discounts to Convention delegates flying to Montreal.

To take advantage of the CFA group rate, contact Janet O’Connell at 800-665-4232 ext. 251 or joconnell@cfa.ca for the promotion code and book your flight online at www.aircanada.com and www.flyporter.com. Availability is limited and offered on a first-come, first-serve basis so call or e-mail today to ensure you get in on the group rate.

Celebrating Franchising Excellence with the 2020 CFA Awards of Excellence in Franchising Program The CFA thanks all its members for submitting their entries for the 2020 Canadian Franchise Association Awards, which includes the CFA Awards of Excellence in Franchising and Franchisees’ Choice programs. This one-of-a-kind awards program recognizes excellence in franchising and celebrates the foundational relationship between a franchise system and its franchisees.

The winners of the 2020 CFA Recognition Awards, which include the Outstanding Corporate Citizen Award, Volunteer Leadership Excellence Award, Hall of Fame Award, the Diversity and Inclusion Award, the Distinguished FSS / Supplier Award, and the Lifetime Achievement Award, will be announced on Monday, April 6 at the 2020 CFA National Convention in Montreal.

Now Open: Update Your Complimentary Member Listing Online Now that the 2020 Franchise Canada Directory is on newsstands, members can once again update their complimentary listing on the CFA’s Self-Serve Area.

To update your company listing, visit selfserve.cfa.ca. If you require access to the Self-Serve Area, please contact Alexandra Mann, Manager, Member Programs, at amann@cfa.ca.

Upcoming CFA Events February 22-23, 2020 – Franchise Canada Show in Toronto Connect with franchise prospects in Ontario through our online tradeshow Canada’s ultimate franchise exhibiton and the offical show of the Canadian Franchise Associaton (CFA). April 4-6, 2020 - CFA National Convention, Montreal, QC Connect with industry peers at Canada’s largest franchise conference. May 13, 2020 – Growth & Exit Strategies Conference, Toronto, ON Maximize the value of your business after years of hard work with the CFA’s first-ever, not-to-be-missed, Growth & Exit Strategies: Where Franchising Meets the Money event. Visit www.cfa.ca/growthandexit to learn more and to RSVP.

Public Consultation on Changes to the Arthur Wishart Act (Ontario) The Ontario government is consulting on changes to the Arthur Wishart Act and its regulations. The CFA’s Legal and Legislative Affairs Committee (LLAC) drafted a comprehensive response and we have been meeting with public servants and political staff to ensure the government understands our recommendations.

Single-Use Plastic Bans A Canada-wide ban on many single-use plastics is on track to be implemented in 2021. The federal ban was a pre-election commitment made by PM Trudeau. In late January, a scientific report was released that concluded that there is sufficient evidence proving plastic pollution is harmful to the environment and wildlife.

This follows a recent ban by Vancouver City Council that was approved in November 2019.

The CFA’s Government Relations Committee will be working with other industry associations and governments across Canada to ensure that franchised businesses are treated fairly.

Ontario Opening Cannabis Retail Market Ontario is removing the temporary cap on private cannabis stores in the province and eliminating the pre-qualification requirements for prospective retailers. Under the new plan they will be increasing the ability of licensed producers to participate in the retail market.

The government believes that these changes will “enable more capital, experience and capacity to enter the market and will help more legal stores open faster.” The government also believes that phasing in limits the number of authorized stores a licence holder can have, to ensure fair access for retailers.

The Alcohol and Gaming Commission of Ontario (AGCO) began accepting operator licence applications on January 6, 2020. They expect to issue new licences in April, at a rate of 20 per month.

The province continues to have strict rules for private cannabis stores to help keep kids safe and ensure retailers behave with integrity.

Federal Tax Changes Starting January 1, 2020, the basic amount most Canadians can earn tax-free is going up on Jan. 1, 2020 to $13,229. The increase is being phased in over four years until it reaches $15,000 in 2023. For Canadians in the lower income brackets, the changes could result in tax savings of up to $140 in 2020. For those earning more than $150,473 annually, those savings will be clawed back or not offered at all.

Employment insurance premiums for individual workers and employees will slightly decrease. The maximum annual EI contribution for a worker will fall by $3.86 to $856.36 and employers’ maximum contribution will fall $5.41 to $1,198.90 per employee.

Ontario Reduces Taxes for Small Businesses Effective January 1, 2020, Ontario reduced the small business Corporate Income Tax (CIT) rate by 8.7 per cent to 3.2 per cent. This will deliver up to $1,500 in annual savings to more than 275,000 businesses - from family-owned shops to innovative start-ups. Small businesses also benefit from accelerated write-offs of capital investments, as well as the government’s decision to not parallel a federal measure that would have increased taxes on some small businesses earning passive investment income.

U.S. News –Major Win for Franchises on Joint Employer Rule In a major win for America’s franchises, the U.S. Department of Labor (DOL) issued its final joint employer rule to update the regulations interpreting joint employer status under the Fair Labor Standards Act (FLSA). This major rulemaking is the culmination of years of advocacy from the International Franchise Association (IFA) and its members and allies. In an op-ed in The Wall Street Journal, Administration officials said “The new rule also gives companies in traditional contracting and franchising relationships confidence that they can demand certain basic standards from suppliers or franchisees – like effective anti-harassment policies and compliance with employment laws – without themselves being deemed the employer of the other company’s workers. That will help companies promote fair working conditions without facing unwarranted regulatory costs.”

Do you know of any issue impacting franchising of which the CFA should be made aware? Let us know by contacting David Black, Director, Government Relations & Public Policy, at dblack@cfa.ca or 416-695-2896 ext. 297.