Coalition to Save Local Businesses Commends Bipartisan Senate Introduction of American Franchise Act
Bill introduced by Sens. Roger Marshall (R-KS) and Angus King (I-ME) would protect America’s 850,000 local franchise businesses from regulatory whiplash; Follows bipartisan companion House legislation
WASHINGTON – Today, the Coalition to Save Local Businesses (CSLB), a group of local small business owners, franchise brands, and industry associations, applauded U.S. Senate introduction of the American Franchise Act, which would protect America’s 850,000 franchise small businesses from regulatory whiplash that has caused four significant changes to the joint employer standard in the last decade. The Senate bill was introduced by Sens. Roger Marshall (R-KS) and Angus King (I-ME), along with Susan Collins (R-ME), James Lankford (R-OK), and Tim Sheehy (R-MT). It follows the September introduction of companion legislation in the U.S. House of Representatives, H.R. 5267, which is now up to 66 bipartisan cosponsors.
“Today’s bipartisan Senate introduction is another pivotal moment toward long-term certainty for America’s franchised small businesses,” said Erica Farage, spokesperson for the Coalition to Save Local Businesses. “We appreciate the bipartisan leadership of Senators Marshall, King, Lankford, Sheehy, and Collins for standing up for local business owners across the country – and call on the Senate to pass the measure quickly, so small business owners know their futures won’t be called into question by every change in the political tide.”
Today’s Senate introduction of the American Franchise Act follows House introduction on Sept. 10, 2025. On Dec. 3, 2025, a group of more than 100 industry, diversity, and franchisee associations from nearly all 50 states sent a letter urging Members of Congress to support the measure.
“As a franchisee in Maine, I’m grateful to Senators King and Collins for leading the charge to protect local franchises,” said Cody Currier, an Aroma Joe’s franchise owner in Lewiston, ME. “This business model made it possible for my family to follow our dreams and give back to the community we call home. The American Franchise Act will protect the future of the franchised businesses so others can have the same opportunity without fear of constantly changing rules of the game.”
“The bipartisan American Franchise Act is our chance to FINALLY get the joint employer standard settled and signed into law,” said Stephen Shields, Express Employment Professionals franchise owner in Pittsburg, Kansas. “This will protect us as franchisees and franchisors, allowing us to focus on growing our businesses with greater certainty.”
“Franchising has provided hundreds of thousands of entrepreneurs the opportunity to own their own business,” said David Ostrowe, a franchise owner of Burger King, Blaze Pizza, and Taco Bell based in Oklahoma City, OK. “Four significant changes in regulation over the last decade can be crippling for small business owners, and I’m grateful we have a legislative solution to provide much-needed certainty so we can plan well into the future – and keep the door open to future franchisees in our great state.”
The American Franchise Act is a new bipartisan, legislative solution that would provide clarity to the joint employer standard in a franchise relationship, which determines when two entities share responsibility for violations of the National Labor Relations Act (NLRA) and Fair Labor Standards Act (FLSA). The federal joint employer standard has changed four times over the last decade based on political control of the White House.
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.
The full bill text is available here. A summary of the legislation is available here.
# # #
About the Coalition to Save Local Businesses:
The Coalition to Save Local Businesses is an initiative of the American Hotel and Lodging Association, American Pizza Community, the Association of Kentucky Fried Chicken Franchisees, CHRO Association, EPCON Communities, Family Enterprise USA, Family Business Coalition, the Health and Fitness Association, Home Care Association of America, the International Franchise Association, International Salon/Spa Business Network, International Spa Association, National Association of Black Hotel Owners, National Association of Convenience Stores, National Federation of Independent Business, Operators, and Developers, National Franchisee Association, National Restaurant Association, NATSO (National Association of Truckstop Operators), Professional Beauty Association, Small Business and Entrepreneurship Council, SIGMA: America’s Leading Fuel Marketers, and the U.S. Travel Association. 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/.