IFA Calls on Congress to Protect Small Businesses and Pass the American Franchise Act

Following 2026 midterm elections, IFA urges lawmakers to act before year-end to deliver certainty for franchise small businesses and address voters’ affordability concerns by acting on bipartisan American Franchise Act momentum now

November 04, 2026 // Franchising.com // WASHINGTON – Following the 2026 midterm elections, the International Franchise Association (IFA) today called on Congress to prioritize passing the bipartisan, bicameral American Franchise Act (AFA) during the remainder of the 119th Congress. The American Franchise Act passed out of the U.S. House Education and Workforce Committee in July and currently has 158 cosponsors in the House.

“IFA congratulates this year’s winners and looks forward to working with both parties to protect franchise small businesses and the nine million working Americans they support,” said Matt Haller, IFA president and CEO. “With affordability clearly top of mind for voters, Congress has a narrow window to bring immediate relief to America’s 832,000 franchise small businesses by passing the bipartisan American Franchise Act. Franchises pay workers well, and keep prices low for high-quality goods and services, and the American Franchise Act would enable them to do both for the long-term. With further uncertainty looming in the courts, small businesses can’t afford to wait.”

For over a decade, franchised businesses have faced changing joint employer rules driven by legal challenges and policy shifts from one administration to the next. The American Franchise Act would establish a clear, permanent standard specifically for franchisors and franchisees under the Fair Labor Standards Act and the National Labor Relations Act, clarifying when a franchise brand shares legal responsibility for a franchisee’s employees.

The legislation has bipartisan support in both chambers of Congress, and the endorsement of the White House and the House Problem Solvers Caucus. The American Franchise Act also has broad support across the franchise community, including major franchisee groups and brands, as well as hundreds of state and local business, advocacy, and diversity groups.

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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