WASHINGTON -- The International Franchise Association (IFA) has submitted formal comments to the New York City Board of Health opposing Mayor Michael Bloomberg's proposed ban on sugary drinks larger than 16 ounces, arguing the proposed ban could lead franchise owners to raise prices or lay off workers to cover compliance and operating costs.
"Limiting the sale of beverages to consumers will do nothing more than force small-business franchise restaurant owners to raise prices on other items to account for the loss in sales, or worse yet, consider laying off workers, and neither option is a good option," IFA senior vice president of government relations and public policy Judith Thorman said in the letter. "Additionally, restaurant owners will incur many operating costs in order to comply with the proposed rule's requirements. These include the purchase of additional equipment or remodeling expenses, which will be significant and borne by thousands of businesses," she said.
IFA has voiced its opposition to the ban as part of New Yorkers for Beverage Choices, a coalition of concerned businesses, community groups and individuals. In New York State, franchise businesses support more than 784,000 jobs and $46 billion in economic output.
"New York City policymakers should shift their focus to improving the business environment for small business franchise restaurant owners who provide many entry-level and managerial jobs for the city's residents, rather than proposing regulations that would harm small business owners and impact the freedom of their consumers to make their own product choices," said Thorman.
To read the full letter, click here.
IFA is the world's oldest and largest organization representing franchising worldwide. It works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Members include franchise companies in more than 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.
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