Business Groups Herald U.S. House Problem Solvers Caucus Support of American Franchise Act
Bipartisan momentum continues to grow in both chambers of Congress for commonsense legislation with broad, cross-party support
WASHINGTON, D.C. – Today, the Coalition to Save Local Businesses (CSLB), a group of local small business owners, franchise brands, and industry associations, welcomed the endorsement of the American Franchise Act, H.R. 5267, by the U.S. House of Representatives Problem Solvers Caucus, a bipartisan coalition of members, “on a mission to change the culture of D.C.”
“The momentum behind the American Franchise Act continues to accelerate, and the endorsement by the U.S. House Problem Solvers Caucus is a testament to the cross-party appeal for America’s franchised businesses,” said Erica Farage, spokesperson for the Coalition to Save Local Businesses. “Lawmakers in both chambers of Congress have a chance to stand up and protect a uniquely American engine of upward mobility, and create certainty that will allow countless small business owners to reach even new heights.”
Introduced in late 2025, the American Franchise Act (AFA) (H.R. 5267) would codify the federal joint employer standard in the franchise context that determines when two entities share responsibility for the same employees. The joint employer standard has changed four times over the past 10 years, with every change in administration. The implementation of the broad 2015 standard drove up legal costs by 93% and cost an estimated 376,000 American jobs.
The American Franchise Act applies only to the franchisor-franchisee relationship and does not affect joint employer determinations outside of franchising. The legislation clarifies that, “a franchisor may be considered a joint employer of the employees of a franchisee only if the franchisor possesses and exercises substantial direct and immediate control over one or more essential terms or conditions of the employees of the franchisee,” consistent with the National Labor Relations Board’s (NLRB) 2020 joint employer rule, which remains in effect today.
Split by Republican and Democratic members of Congress, the Problem Solvers Caucus brings members of both parties, “together around a table, debating, listening, and working together to help solve” important issues.
The full bill text is available here. A summary of the legislation is available here.
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The Coalition to Save Local Businesses is an initiative of the American Hotel and Lodging Association, the Health and Fitness Association, the International Franchise Association, the International Salon and Spa Business Network, the International Spa Association, the National Restaurant Association, NATSO: Representing America's Travel Centers and Truck Stops, the Professional Beauty Association, SIGMA: America's Leading Fuel Marketers, and the Small Business and Entrepreneurship Council. Together, they are united in support of a transparent joint employer standard that reaffirms the independence of local franchise owners. Learn more at https://savelocalbusinesses.com/.