TY 2013 Form 990 Schedule O

efile Public Visual Render ObjectId: 201501479349300820 - Submission: 2015-05-27 TIN: 36-6108621

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.
MediumBullet

Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.

OMB No. 1545-0047

2013

Open to Public
Inspection

Name of the organization

INTERNATIONAL FRANCHISE ASSOCIATION

Employer identification number

36-6108621

Return Reference	Explanation
FORM 990, PART VI, SECTION A, LINE 1	IFA HAS AN EXECUTIVE COMMITTEE THAT MEETS THREE TIMES A YEAR: FEBRUARY, JUNE, AND SEPTEMBER. THE COMMITTEE CONSISTS OF THE BOARD CHAIR (WHO ALSO CHAIRS THE COMMITTEE), THE TWO MOST RECENT PAST CHAIRS ELIGIBLE TO SERVE, THE VICE CHAIR, THE TREASURER, THE SECRETARY, THE CHAIR OF THE FRANCHISOR FORUM, THE CHAIR OF THE FRANCHISEE FORUM, AND THE CHAIR OF THE SUPPLIER FORUM. THE COMMITTEE HAS THE AUTHORITY OF THE FULL BOARD IN THE MANAGEMENT OF THE ASSOCIATION DURING THE PERIODS BETWEEN FULL BOARD MEETINGS; EXCEPT THAT THE EXECUTIVE COMMITTEE HAS NO AUTHORITY REGARDING ACTS OR POWERS SPECIFICALLY RESERVED FOR THE BOARD BY OPERATION OF THE ILLINOIS NOT-FOR-PROFIT CORPORATION ACT, NOR BY BOARD RESOLUTION. ADDITIONALLY, THE EXECUTIVE COMMITTEE MAY NOT CONTRAVENE A SPECIFIC POLICY OR RESOLUTION PREVIOUSLY ADOPTED BY THE FULL BOARD.
FORM 990, PART VI, SECTION A, LINE 6	THE ASSOCIATION'S BYLAWS PROVIDE FOR TWO BASIC CATEGORIES OF MEMBERSHIP: FRANCHISOR MEMBER AND FRANCHISEE MEMBER. THE ASSOCIATION'S BOARD OF DIRECTORS HAS ESTABLISHED A THIRD CATEGORY OF MEMBERSHIP - SUPPLIER MEMBER - IN ACCORDANCE WITH THE BYLAWS. TO BE ELIGIBLE TO BE A FRANCHISOR MEMBER, A COMPANY MUST HAVE A SATISFACTORY FINANCIAL CONDITION, CONDUCT BUSINESS IN A MANNER THAT REFLECTS FAVORABLY UPON FRANCHISING; BE COMPLIANT WITH APPLICABLE STATE AND FEDERAL LAWS, AND HAVE SATISFACTORY REFERENCES. THERE ARE TWO TYPES OF FRANCHISEE MEMBERS: FRANCHISEE ORGANIZATION MEMBERS (ASSOCIATIONS OR ADVISORY COUNCILS COMPOSED PRIMARILY OF FRANCHISEES AND RECOGNIZED OR DESIGNATED BY A FRANCHISOR), AND FRANCHISEE MEMBERS (ANY SINGLE OR MULTIUNIT FRANCHISEE OPERATING HIS OR HER BUSINESS PURSUANT TO A FRANCHISE OR SIMILAR AGREEMENT). ADDITIONALLY, A SUBSIDIARY OF A FRANCHISOR OR FRANCHISEE MEMBER THAT INDEPENDENTLY QUALIFIES FOR MEMBERSHIP, AND SUBSIDIARIES OF A COMMON PARENT COMPANY THAT QUALIFIES FOR MEMBERSHIP AS A FRANCHISOR OR FRANCHISEE MEMBER, MAY BECOME AN INDEPENDENT FRANCHISOR OR FRANCHISEE MEMBER.
FORM 990, PART VI, SECTION A, LINE 7A	THE ASSOCIATION'S BOARD OF DIRECTORS IS SELECTED WITH THE ASSISTANCE OF THE NOMINATING COMMITTEE, WHICH CONSISTS OF THE TWO MOST RECENT PAST CHAIRS OF THE BOARD OF DIRECTORS ELIGIBLE AND WILLING TO SERVE AS A MEMBER OF THE NOMINATING COMMITTEE, THE CURRENT CHAIR OF THE BOARD OF DIRECTORS, THE CURRENT CHAIR OF THE DIVERSITY INSTITUTE, THE CURRENT CHAIR OF THE WOMEN'S FRANCHISE COMMITTEE, AND THE MOST RECENT PAST CHAIRS OF THE FRANCHISOR FORUM AND THE FRANCHISEE FORUM ELIGIBLE AND WILLING TO SERVE AS A MEMBER OF THE NOMINATING COMMITTEE. THE MOST RECENT PAST CHAIR OF THE BOARD OF DIRECTORS SHALL SERVE AS CHAIR, AND THE CHAIR OF THE BOARD OF DIRECTORS SHALL SERVE AS VICE CHAIR, OF THE NOMINATING COMMITTEE. IT IS THE DUTY OF THE NOMINATING COMMITTEE TO PROPOSE TO THE BOARD OF DIRECTORS: (I) CANDIDATES FOR THE OFFICE OF DIRECTOR TO BE ELECTED BY THE BOARD OF DIRECTORS AT ITS REGULAR FALL MEETING AND (II) CANDIDATES FOR THE FOLLOWING OFFICERS OF THE ASSOCIATION TO BE ELECTED BY THE BOARD OF DIRECTORS AT ITS REGULAR FALL MEETING: CHAIR, FIRST VICE CHAIR, SECOND VICE CHAIR, SECRETARY, TREASURER AND ASSISTANT TREASURER, IF THE BOARD OF DIRECTORS HAS NOTIFIED THE NOMINATING COMMITTEE TO SLATE A CANDIDATE FOR THE OFFICE OF ASSISTANT TREASURER. THE NOMINATING COMMITTEE SHALL NOMINATE A NUMBER OF CANDIDATES FOR THE BOARD OF DIRECTORS SUFFICIENT TO FILL ALL THEN AND EXISTING VACANCIES ON THE BOARD OF DIRECTORS AND ALL VACANCIES THAT ARE PROJECTED TO OCCUR BY THE NEXT ANNUAL MEETING OF THE ASSOCIATION.
FORM 990, PART VI, SECTION B, LINE 11	THE DIRECTOR OF FINANCE REVIEWED THE FORM 990 BEFORE IT WAS FILED.
FORM 990, PART VI, SECTION B, LINE 15	THE COMPENSATION OF THE PRESIDENT/CEO IS REVIEWED BY THE ORGANIZATION'S EXECUTIVE COMPENSATION COMMITTEE. THE COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES IS REVIEWED BY THE PRESIDENT/CEO.
FORM 990, PART VI, SECTION C, LINE 19	COPIES OF ALL GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS ARE PROVIDED UPON REQUEST.
FORM 990, PART XI, LINE 9:	AD BARTER REVENUE - TAX ONLY -217,175.
FORM 990, PART XII, LINE 2C:	THE AUDIT OVERSIGHT PROCESS HAS REMAINED UNCHANGED FROM THE PREVIOUS YEAR.

Return Reference

Explanation

FORM 990, PART VI, SECTION A, LINE 1

IFA HAS AN EXECUTIVE COMMITTEE THAT MEETS THREE TIMES A YEAR: FEBRUARY, JUNE, AND SEPTEMBER. THE COMMITTEE CONSISTS OF THE BOARD CHAIR (WHO ALSO CHAIRS THE COMMITTEE), THE TWO MOST RECENT PAST CHAIRS ELIGIBLE TO SERVE, THE VICE CHAIR, THE TREASURER, THE SECRETARY, THE CHAIR OF THE FRANCHISOR FORUM, THE CHAIR OF THE FRANCHISEE FORUM, AND THE CHAIR OF THE SUPPLIER FORUM. THE COMMITTEE HAS THE AUTHORITY OF THE FULL BOARD IN THE MANAGEMENT OF THE ASSOCIATION DURING THE PERIODS BETWEEN FULL BOARD MEETINGS; EXCEPT THAT THE EXECUTIVE COMMITTEE HAS NO AUTHORITY REGARDING ACTS OR POWERS SPECIFICALLY RESERVED FOR THE BOARD BY OPERATION OF THE ILLINOIS NOT-FOR-PROFIT CORPORATION ACT, NOR BY BOARD RESOLUTION. ADDITIONALLY, THE EXECUTIVE COMMITTEE MAY NOT CONTRAVENE A SPECIFIC POLICY OR RESOLUTION PREVIOUSLY ADOPTED BY THE FULL BOARD.

FORM 990, PART VI, SECTION A, LINE 6

THE ASSOCIATION'S BYLAWS PROVIDE FOR TWO BASIC CATEGORIES OF MEMBERSHIP: FRANCHISOR MEMBER AND FRANCHISEE MEMBER. THE ASSOCIATION'S BOARD OF DIRECTORS HAS ESTABLISHED A THIRD CATEGORY OF MEMBERSHIP - SUPPLIER MEMBER - IN ACCORDANCE WITH THE BYLAWS. TO BE ELIGIBLE TO BE A FRANCHISOR MEMBER, A COMPANY MUST HAVE A SATISFACTORY FINANCIAL CONDITION, CONDUCT BUSINESS IN A MANNER THAT REFLECTS FAVORABLY UPON FRANCHISING; BE COMPLIANT WITH APPLICABLE STATE AND FEDERAL LAWS, AND HAVE SATISFACTORY REFERENCES. THERE ARE TWO TYPES OF FRANCHISEE MEMBERS: FRANCHISEE ORGANIZATION MEMBERS (ASSOCIATIONS OR ADVISORY COUNCILS COMPOSED PRIMARILY OF FRANCHISEES AND RECOGNIZED OR DESIGNATED BY A FRANCHISOR), AND FRANCHISEE MEMBERS (ANY SINGLE OR MULTIUNIT FRANCHISEE OPERATING HIS OR HER BUSINESS PURSUANT TO A FRANCHISE OR SIMILAR AGREEMENT). ADDITIONALLY, A SUBSIDIARY OF A FRANCHISOR OR FRANCHISEE MEMBER THAT INDEPENDENTLY QUALIFIES FOR MEMBERSHIP, AND SUBSIDIARIES OF A COMMON PARENT COMPANY THAT QUALIFIES FOR MEMBERSHIP AS A FRANCHISOR OR FRANCHISEE MEMBER, MAY BECOME AN INDEPENDENT FRANCHISOR OR FRANCHISEE MEMBER.

FORM 990, PART VI, SECTION A, LINE 7A

THE ASSOCIATION'S BOARD OF DIRECTORS IS SELECTED WITH THE ASSISTANCE OF THE NOMINATING COMMITTEE, WHICH CONSISTS OF THE TWO MOST RECENT PAST CHAIRS OF THE BOARD OF DIRECTORS ELIGIBLE AND WILLING TO SERVE AS A MEMBER OF THE NOMINATING COMMITTEE, THE CURRENT CHAIR OF THE BOARD OF DIRECTORS, THE CURRENT CHAIR OF THE DIVERSITY INSTITUTE, THE CURRENT CHAIR OF THE WOMEN'S FRANCHISE COMMITTEE, AND THE MOST RECENT PAST CHAIRS OF THE FRANCHISOR FORUM AND THE FRANCHISEE FORUM ELIGIBLE AND WILLING TO SERVE AS A MEMBER OF THE NOMINATING COMMITTEE. THE MOST RECENT PAST CHAIR OF THE BOARD OF DIRECTORS SHALL SERVE AS CHAIR, AND THE CHAIR OF THE BOARD OF DIRECTORS SHALL SERVE AS VICE CHAIR, OF THE NOMINATING COMMITTEE. IT IS THE DUTY OF THE NOMINATING COMMITTEE TO PROPOSE TO THE BOARD OF DIRECTORS: (I) CANDIDATES FOR THE OFFICE OF DIRECTOR TO BE ELECTED BY THE BOARD OF DIRECTORS AT ITS REGULAR FALL MEETING AND (II) CANDIDATES FOR THE FOLLOWING OFFICERS OF THE ASSOCIATION TO BE ELECTED BY THE BOARD OF DIRECTORS AT ITS REGULAR FALL MEETING: CHAIR, FIRST VICE CHAIR, SECOND VICE CHAIR, SECRETARY, TREASURER AND ASSISTANT TREASURER, IF THE BOARD OF DIRECTORS HAS NOTIFIED THE NOMINATING COMMITTEE TO SLATE A CANDIDATE FOR THE OFFICE OF ASSISTANT TREASURER. THE NOMINATING COMMITTEE SHALL NOMINATE A NUMBER OF CANDIDATES FOR THE BOARD OF DIRECTORS SUFFICIENT TO FILL ALL THEN AND EXISTING VACANCIES ON THE BOARD OF DIRECTORS AND ALL VACANCIES THAT ARE PROJECTED TO OCCUR BY THE NEXT ANNUAL MEETING OF THE ASSOCIATION.

FORM 990, PART VI, SECTION B, LINE 11

THE DIRECTOR OF FINANCE REVIEWED THE FORM 990 BEFORE IT WAS FILED.

FORM 990, PART VI, SECTION B, LINE 15

THE COMPENSATION OF THE PRESIDENT/CEO IS REVIEWED BY THE ORGANIZATION'S EXECUTIVE COMPENSATION COMMITTEE. THE COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES IS REVIEWED BY THE PRESIDENT/CEO.

FORM 990, PART VI, SECTION C, LINE 19

COPIES OF ALL GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS ARE PROVIDED UPON REQUEST.

FORM 990, PART XI, LINE 9:

AD BARTER REVENUE - TAX ONLY -217,175.

FORM 990, PART XII, LINE 2C:

THE AUDIT OVERSIGHT PROCESS HAS REMAINED UNCHANGED FROM THE PREVIOUS YEAR.

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2013

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