More than 100 Business, Advocacy and Diversity Groups Call on Congress to Pass American Franchise Act During Lame Duck

The International Franchise Association (IFA) today led a coalition letter of more than 100 business, advocacy, and diversity groups from around the country calling on Congress to enact the bipartisan American Franchise Act by the end of the year. In a letter to House leadership, the groups “write with a sense of urgency” to protect 832,000 small businesses and their 9 million workers by enacting a long-term, targeted joint employer standard after five changes to the regulation in the last decade.

The letter, signed by 106 organizations, states, “Passage of the American Franchise Act would underscore Congress’s commitment to economic opportunity and provide an immediate boost to the franchise sector, which supports nearly nine million workers at over 832,000 locations in America...After more than a decade of uncertainty surrounding the joint employer issue, the time for action is now.”

The letter includes signatures from 72 state associations, and 33 national organizations, including leading franchisee associations, chambers of commerce, and several diversity organizations. According to Morning Consult, 75% of Americans want to see clear, consistent legal protections for franchised businesses, as provided by the American Franchise Act. Support the American Franchise Act runs at a rate of 6:1 over opposition on both sides of the aisle.

“Today’s letter reinforces the wide-ranging support for protecting local franchised businesses, their workers, and consumers across America,” said Michael Layman, IFA Chief Advocacy Officer. “Franchising touches every corner of the country, and these small business owners have had to navigate a pendulum of changing regulations for a decade. With the end of the Congress approaching and a looming court ruling, the American Franchise Act is our one shot to provide long-term certainty so franchised businesses can keep prices affordable for their customers and continue to provide meaningful jobs for millions of workers.”

The letter follows a group of 20 free-market groups, led by the National Taxpayers Union, calling for passage of the American Franchise Act this year, saying, “As the 119th Congress comes to a close and with affordability high on the minds of voters, we urge the House and Senate to pass this commonsense legislation…Small businesses are the backbone of Main Street. At a time when so many Americans are concerned about affordability, it’s more important than ever that franchise businesses be protected from Washington overreach.”

Introduced in September 2025 by U.S. Reps. Kevin Hern (R-OK) and Don Davis (D-NC), the American Franchise Act would codify the joint employer standard as requiring direct control of narrowly defined essential terms and conditions of employment, applying only to the franchisor-franchisee relationship and no joint employer determinations outside of franchising. The legislation passed out of the House Education and Workforce Committee in July, has 170 bipartisan House and Senate cosponsors, was endorsed by the White House, and has the full support of the franchise community.

About the International Franchise Association

Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) is 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 832,000 franchise establishments that support nearly 8.8 million direct jobs, $907.3 billion of economic output for the U.S. economy, and 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.

SOURCE International Franchise Association

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