Rodgers Testimony

Summary

Written testimony of Joshua Rodgers, a Camp Bow Wow franchise owner in Parkville, Missouri, before the United States Senate Committee on Small Business & Entrepreneurship at a hearing titled "Main Street's Top Dog: Growing the Small Business Pet Economy," dated March 11, 2026. Appearing on behalf of the International Franchise Association, he describes the franchise business model and cites 832,521 franchise establishments supporting nearly 8.8 million direct jobs and $907.3 billion of economic output. The testimony summarizes the 2026 Franchising Economic Outlook, which projects over 12,000 new franchised businesses and output exceeding $920 billion, and describes the pet industry as a $157 billion market. It asks whether the SBA 504 program's $5 million borrowing cap remains adequate and urges passage of S.3525, the American Franchise Act.

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               JOSHUA RODGERS

                 FRANCHISE OWNER
                  CAMP BOW WOW
                   PARKVILLE, MO

TESTIMONY BEFORE THE U.S. SENATE COMMITTEE ON SMALL
           BUSINESS & ENTREPRENEURSHIP

HEARING ON “MAIN STREET’S TOP DOG: GROWING THE SMALL
              BUSINESS PET ECONOMY ”


               WEDNESDAY, MARCH 11




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Chair Ernst, Ranking Member Markey, and distinguished Members of the Committee: Thank you for
the opportunity to testify today.

My name is Joshua Rodgers, and my wife Ashley and I own and operate seven Camp Bow Wow dog
daycare, boarding, and grooming locations across Missouri, Colorado, and Florida, As a pet care
owner operating with the franchise model, today I look forward to sharing the economic outlook for
franchising, my perspective on how several recent congressional policies affect small business, and
the need for Congress to enact the American Franchise Act – a new proposal to solve an old
problem.

As a franchise owner, I appear today on behalf of the International Franchise Association (IFA), the
world’s oldest and largest organization representing franchising worldwide. IFA works through its
government relations and public policy, media relations, and educational programs to protect,
enhance and promote franchising and the approximately 832,521 franchise establishments that
support nearly 8.8 million direct jobs and $907.3 billion of economic output, representing almost 3
percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over
300 different business format categories, individual franchisees, and companies that support the
industry in marketing, law, technology, and business development.

We love animals, and we love operating in the U.S. pet industry, which is a massive, $157 billion-
dollar industry, according to the American Pet Products Association. The pet care market could
reach $228 billion by 2030. That’s no surprise considering 94 million households own at least one
pet and 51% of those pet owners own dogs. The opportunity for boarding, daycare and grooming
alone is $13 billion and as a Camp Bow Wow owner, we believe we’re positioned to support this
continued growth.

Thanks to the franchise growth model, we currently employ dozens of Americans in each of the
communities we serve, and we expect to be operating in five states by year's end. Ashley and I are
first generation college graduates who come from very humble beginnings. My father is a plumber,
my mother a seamstress. Both business owners, who struggled immensely in my early years, are
now successful, but only after a lot of hard work and sacrifice. My wife and I did not have a roadmap
to successful entrepreneurship, but what we did have was an idea, a local need in our community
for premiere pet care and a combined determination to partner with a franchise business model to
increase our success rate. The Camp Bow Wow franchise model enabled an aspiring small business
owner to go into business for ourselves, but not by ourselves. That combination allowed us to open
our first location in April 2022, break even in six weeks, and grow to seven locations in fewer than
four years.

My testimony highlights the power of franchising, an all-American business model that is far more
than the 8.8 million direct jobs and roughly 832,521 establishments across America. Franchising is
more than just numbers on a page – it is a powerful method for business growth in hundreds of
industries, including restaurants, hospitality, personal care, pet care, security, home care, fitness,
and real estate, and provides business ownership opportunities to individuals who may not have
the opportunity otherwise but feel empowered to be a part of a team, to find a purpose, and to be a
part of brand that is greater than themselves – all the while, helping to positively affect the lives of
their employees, family, and communities as a small business owner.

To add, the franchise business model allows franchisees, like myself at Camp Bow Wow, to
immediately benefit from the franchisor’s existing supply chain, marketing tools, and operational
systems, while we maintain control of day-to-day operations, staffing, and local marketing. Every

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franchise owner is driven by something, has a dream that may not only be monetary, but is willing
to make a difference, and statistically, the benefits of franchising speak for themselves: for example,
franchising drives 1.4 times higher sales than comparable non-franchise establishments, and 2.1
times as many jobs than non-franchise counterparts.

For franchisors and franchisees alike, the model is a win-win, and I look forward to speaking on its
benefits.


The Franchise Model
Despite how it is often characterized, franchising is not an industry, rather it is a business growth
model used within nearly every industry. At its core, franchising is about the relationship between
the franchisor and its franchisees – how the franchisor supports its franchisees, the franchisor’s
brand value, and how the franchisee, like myself, then meet the franchisor’s obligations to deliver
the products and services to the system’s brand standards. For me, that is delivering high quality
care in a safe and fun environment for our pet parents and four-legged customers.

The franchise relationship is a long-term relationship that spans a decade and in many cases more
than 20 years. These long-term relationships only work where the parties can trust that the
relationship and the expectations each party has of the other will remain stable.

Often, franchising is mischaracterized as “big business,” yet it is not. Franchises are first a local
business, like my wife and mine, distinguished from other local businesses because we have
licensed the branding and operational processes from a franchisor – for me, that is Camp Bow
Wow – while operating independently in a defined market – which in our case, spans across four
states in multiple communities after starting right where we call home. In fact, 85% of franchisees
live in the same community where they operate their business. As the local owner, I am
responsible for hiring staff, organizing schedules, managing payroll, and all daily operational
tasks as well as local sales and marketing.

The value of franchising then lies in a strategic balance in the relationship between a franchisor
and franchisee: the independence for me as a franchisee to manage the day-to-day operations and
connections with my employees, consumers and the local community, balanced with the franchise
system giving aspiring small business owners like me a head start toward becoming my own boss,
with a proven business model that can set up new business owners for success and easier access
to financing than a traditional business.

This franchise model has allowed me as a franchise owner to become entrepreneurial, where we
set and accomplished a goal of serving over 100 dogs a day at our first location which we built
from the ground up. As we grew, we expanded to new locations across four states – serving more
local communities and creating more jobs. Lastly, as we have grown, we also grew our
partnerships and charitable endeavors – a hallmark of local franchise businesses. Over 83% of
franchisees give to local charities last year, donating an estimated $2.3 billion to charity, raising
$2.6 billion, and sponsoring 34 million hours of volunteer activity. For example, we partner with
our local shelters helping foster dogs get adopted within our customer base and work with local
grooming training centers, such as Pawsperity to hire new aspiring groomers who are at risk-
single parents, looking to get out of poverty by becoming skilled pet groomers.

These opportunities go beyond charitable giving, as franchising provides a pathway to career

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growth at faster rates than their independent counterparts, with part-time franchise employees
were 20% more likely to switch to full-time than non-franchises. Further, retention rates at
franchised businesses were significantly better than those of similarly situated non-franchised
businesses with employees at a franchise location 50% more likely to stay after one year of
employment. Lastly, franchise employees experience higher wage growth and better benefits than
their non franchise counterparts.


2026 Franchising Economic Outlook
For the last several years, franchising has exceeded economic expectations and surpassed the rate
of growth of the broader economy. Last month, IFA released its annual Franchising Economic
Outlook for 2026, and franchising is experiencing tremendous growth. The report, conducted by
FRANdata, an industry-leading research and analytical firm, is IFA’s annual study that details the
franchise sector’s performance for the past year and projected economic outlook for the year ahead.
It also provides an in-depth state outlook for all 50 states and Washington, D.C.

The report positively notes that even in the face of ongoing economic uncertainty, franchise growth
exceeded expectations and continues to be forecast for a strong year ahead due to the resilience of
the business model. The 2026 Franchising Economic Outlook projects over 12,000 new franchised
businesses in 2026, with economic output for the sector rising by 1.6%, exceeding $920 billion
dollars and providing 8.9 million jobs.

Some other key highlights from the report that I wanted to bring to the Committees’ attention are:

   •   The number of franchise establishments will grow from 832,521to 845,000 units – an
       increase of 1.5%.
   •   Franchise employment is anticipated to increase by more than 150,000 jobs (1.8%) to
       nearly 8.9 million jobs.
   •   Franchise output is expected to rise from $907.3 billion to $921.4 billion – an increase of
       1.6%.
   •   Total franchise GDP is estimated to grow by 1.8% from $549.9 to $558.4 billion.
   •   Fueled by business-friendly policies, lower cost of living, and population growth, the
       Southeast and Southwest regions are expected to maintain their positions as the top regions
       for franchised business expansion in the United States, growing at rates of 1.7% and 2.5%,
       respectively.
   •   The top 10 fastest-growing states for franchising in 2026 are: Texas, Florida, Georgia,
       Arizona, North Carolina, Colorado, Michigan, Utah, Ohio, and Maryland.
   •   Michigan, Ohio, and Utah have emerged as new entrants among the top 10 states due to
       their comparative affordability, expansion potential, and meaningful opportunities for
       market leadership.

Pet services, including grooming, boarding, daycare, and veterinary care, are expected to be among
the fastest-growing segments in the pet industry at a year-over-year rate of around 7-8% in key
areas. Other notable trends among industries include:

   •   Since the pandemic, rising awareness of preventive pet healthcare and wellness has
       propelled veterinary services and related offerings to become one of the largest and fastest-
       growing franchised sectors in the pet industry.
   •   With youth unemployment remaining elevated, pet care franchises and establishments play
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       an increasingly important role in creating entry-level job opportunities for young people
       entering the workforce, supporting overall labor market resilience through roles in
       grooming, kennel assistants, doggy daycare, and more.
   •   Successful single-unit pet care franchisees, like I started, are increasingly reinvesting in
       additional locations, transitioning into multi-unit operators to achieve scale, leverage
       operational expertise, and expand services like combined grooming, daycare, and boarding
       facilities.
   •   In the pet travel and lodging space (including boarding and pet-friendly accommodations),
       high-income pet owners continue spending on personalized and “experiential luxury pet
       care,” such as upscale boarding with spa-like amenities, while value-conscious consumers
       scale back on non-essential trips or services.
   •   Similarly, for the first time since the pandemic, premium and experiential pet care services
       (such as luxury boarding, daycare, and grooming) are outpacing more basic offerings. Pet
       owners are shifting preferences toward “experiential pet parenting” — focusing on
       enrichment, socialization, and wellness — rather than purely essential or value-driven
       options.

So, as we enter into 2026, the economic outlook for franchising is strong and promising. We have
favorable economic conditions and supportive regulatory policies which are helping pave the way
for such expected growth and expansion across various sectors in franchising. With further policy
changes, franchises will be even more poised to thrive and open the door to new business owners
and jobs across the country.


SBA Lending: What is working and what needs to
change
Next, I’d like to speak about the importance of the Small Business Administration (SBA) and the
access to capital that its lending programs provide for entrepreneurs, like myself, to become
franchise owners within a franchise system, like Camp Bow Wow.

We have relied on the SBA 504 loan program to finance our growth, and it has performed exactly as
Congress designed it to. The 504 program's structure — favorable rates, real estate eligibility, and
partnership with community banks — is well-suited to a business model built around owning
commercial facilities rather than leasing them. The program works, and it deserves continued
congressional support.

However, speaking for myself, I must raise a concern that I believe warrants urgent attention: the
SBA 504 borrowing cap of $5 million is no longer adequate for small businesses that are
successfully scaling in today's market. A single well-located commercial acquisition, including
building costs, equipment, and working capital, can consume the majority of that cap. With two
additional locations planned this year, we anticipate reaching the ceiling in the near term — which
would force us onto conventional financing at materially higher rates or require us to slow our
growth. Neither outcome advances the goals of the program. I respectfully urge this Committee
consider whether the $5 million cap is adequate in today’s economy.




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Tax Policies that Supported Small Businesses
Last summer, Congress enacted the One Big Beautiful Bill (OBBB), which provided critical tax relief
to small businesses, making permanent provisions like the 199A small business deduction, bonus
depreciation, and no tax on tips.

Bonus Depreciation. This is perhaps the single most impactful provision in the bill for operators
like me. For example, when we acquired our Liberty, Missouri, location in September 2025, we
were able to immediately deduct much of that cost, freeing up capital that was reinvested directly
into facility improvements, equipment, new signage, and our next location in Kansas. When bonus
depreciation was scaled back to 60 percent in prior years, our reinvestment capacity contracted
accordingly. Permanent 100 percent expensing is an investment in the communities where we
operate and the workers we employ.

Section 199A Pass-Through Deduction. As the owner of a pass-through entity, the Section 199A
deduction provides meaningful tax parity between small business owners and larger corporations.
The OBBB made the 20% deduction for qualified business income permanent, removing the
uncertainty that has complicated long-term business planning for millions of entrepreneurs.

No Tax on Tips. Pet groomers, kennel technicians, and customer-facing staff depend on gratuities
as a meaningful part of their take-home income. The OBBB No Tax on Tips language puts more
money in the pockets of working Americans and reduces administrative complexity for small
business owners.

Work Opportunity Tax Credit (WOTC). WOTC is a federal tax credit available to employers for
hiring and employing individuals from certain targeted groups who have faced significant barriers
to employment, including SNAP recipients, supplemental security income recipients, ex-felons, and
certain veterans. According to Department of Labor statistics, WOTC supports the hiring of around
two million such individuals annually. IFA supports support efforts to strengthen WOTC and
expand its eligibility to additional groups.


Extending the FICA tip credit to the Pet Industry
For over 25 years, restaurant employers have been entitled to a federal tax credit for the FICA
payroll taxes they pay on employee tip income under Section 45B. The policy rationale is sound:
tips are income generated by the employee's own service, and penalizing employers for a cost they
did not create is poor policy. The One Big Beautiful Bill extended the 45B tax credit for the purposes
of cash tips to certain “beauty services” businesses where the tipping of employees is customary.
The services provided by our pet groomers fall squarely within any reasonable interpretation of
“beauty services.” Our groomers provide services that are fundamentally aesthetic in nature,
including hair cutting, styling, and shampooing – services that are analogous to those provided in
human salons. For this reason, Camp Bow Wow joined a coalition of 23 trade associations and pet
grooming companies to send a letter to the Treasury Department to clarify that pet grooming
business can in fact utilize the expanded Section 45B credit.

Extending the FICA tip credit to pet grooming would reduce payroll tax costs for small service-
sector employers, deliver a meaningful benefit to frontline workers, and eliminate a distinction that
has no principled basis in policy. This is a common-sense clarification the Treasury Department can
make to help the pet industry.
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The American Franchise Act: Securing the Future of
Local Ownership
Finally, I urge this Committee to support and enact the American Franchise Act (AFA). This
bipartisan, bicameral legislation is essential to ending a decade of "regulatory whiplash" that has
threatened the independence of small business owners like myself.

The franchise model functions because franchisors and franchisees maintain clearly defined,
independent roles. I am an independent small business owner. I hire my own employees, manage
my own operations, and bear my own financial risk. I am not a managed employee of Camp Bow
Wow corporate, nor are my employees. I am a business owner who benefits from their training,
standards, and brand, just as they benefit from my investment and performance.

The ambiguity in the joint employer standard, caused by four changes in the last decade, threatens
this relationship. When franchisors cannot provide operational guidance, safety training, or
workplace support without risking joint employer liability, the franchisees who depend on that
support are the ones who suffer. S.3525, the American Franchise Act, introduced by Senators Roger
Marshall and Angus King solves this problem by codifying a narrow joint employer standard for
franchising. I urge all members of this Committee to support the American Franchise Act, which is
perhaps the easiest way to help the franchised segment of the pet industry.


Conclusion
Madam Chair, in under four years, my wife and I have built a seven-location, multi-state small
business that employs 140 Americans, and serves thousands of pet parents across the Midwest,
Mountain West, and Gulf Coast. That growth was not accidental. It was the product of hard work,
the franchise model, and a policy environment – SBA lending, smart tax treatment, and regulatory
clarity – that gave us the tools to compete.

Now we need Congress to clear up the unnecessary hindrance to the all-American business model
of franchising by passing the American Franchise Act into law this year. It is the most important,
bipartisan achievement Congress can enact in 2026 for franchise small businesses.

Thank you for the opportunity to testify. I welcome any questions the Committee may have.




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