ICYMI: Broad Support for Bipartisan American Franchise Act
Lawmakers and Local Businesses Push to End Regulatory Whiplash and Protect the American Dream
WASHINGTON, DC – Earlier this month, a bipartisan group of 14 members of Congress introduced the American Franchise Act, a landmark bill to bring clarity and stability to the franchise model that supports more than 830,000 small businesses, 8.8 million jobs, and $900 billion in annual economic activity.
Support for the legislation has come from across the country – including from members of Congress, local franchise owners, and national industry voices – underscoring the need for a clear, consistent joint employer standard to provide certainty to small businesses. For more than a decade, constant regulatory changes have created uncertainty, stalled business growth, driven up legal costs, and put jobs at risk.
The American Franchise Act would finally end this cycle and give small business owners the certainty they need to invest and grow.
What They Are Saying:
Rep. Don Davis (D-N.C.): “The American Franchise Act aims to restore stability by clarifying that franchisors and franchisees operate as independent employers while safeguarding workers through established labor standards.”
Rep. Kevin Hern (R-Okla.): “As one of the few franchisees in Congress, I understand how damaging an ever-changing joint-employer rule is to the franchise business model. I'm pleased that we were able to come together in a bipartisan effort to create legislation that safeguards small businesses and individuals.”
Rep. Hillary Scholten (D-Mich.): “The franchising industry is an economic powerhouse, and this bill will bring the clarity small business owners need to continue creating jobs and building up our communities.”
Rep. Beth Van Duyne (R-Texas): “I am excited to join my colleagues in introducing the American Franchise Act, to protect the franchise business model and support the entrepreneurs, workers, and communities who rely on it.”
Rosanna Maietta, President and CEO, American Hotel and Lodging Association: “Hotel franchising is a pathway to the American Dream for so many entrepreneurs. The American Franchise Act codifies a common-sense joint employer definition and is essential to protecting this framework.”
Liz Clark, CEO, Health and Fitness Association: “By safeguarding small business growth, this legislation ensures our industry can keep creating jobs, strengthening communities, and delivering the tools people need to improve their health and well-being.”
Matt Haller, CEO, International Franchise Association: “The American Franchise Act allows franchisors to properly support their franchisees – who are often first-time business owners from all walks of life – without the fear of an overly broad joint employer standard undermining the unique benefits of franchise relationship.
Sean Kennedy, EVP for Public Affairs, National Restaurant Association: “The American Franchise Act creates a clear ‘joint employer’ standard based on direct and immediate control of the conditions of their workforce’s employment. This permanent definition would encourage entrepreneurship and stimulate economic growth in communities across the country.”
Pete Sepp, President, National Taxpayers Union: “Franchises are one of the most reliable ways for everyday entrepreneurs to start and grow a business. This legislation ensures they can continue to thrive.”
Randy Cross, Michigan Franchisee: “Franchising is a powerful model for business growth in hundreds of industries, providing business ownership opportunities to individuals who may not have the opportunity otherwise. The benefits of franchising are undeniable for local owners, brands, employees, and communities, and the American Franchise Act will unlock opportunities for even more aspirational Americans across the country.”
Wes Snyder, Arizona Franchisee: “Local franchisees like me benefit from a strong brand reputation and a vast network of resources designed to drive growth and profitability. I am so proud of the employee team we’ve created and the careers they have built. Everything I have accomplished in my life is a direct result of the franchise model, and we need to protect it.”
Jeff Davis, Virginia Franchisee: “The support a franchise provides helped me take my business to the next level. I would not be as successful in my business without the proven franchise model. I am so thankful for what franchising has provided my family and me over the last 17 years.”
Franchise Times: “More than a dozen bipartisan lawmakers on Capitol Hill teamed up to bring permanency to the nation’s joint employer rules.”
Bloomberg Law: “A rare alliance between both sides of the aisle.”
Entrepreneur Magazine: “The proposal marks the most significant effort yet to settle a fight that has defined the franchise industry for the past decade.”
QSR Magazine: “The back-and-forth on whether a franchisor is considered a joint employer may be coming to an end.”
Lawmakers, business leaders, and local entrepreneurs agree: the American Franchise Act is the bipartisan solution to stop regulatory whiplash, preserve jobs, and keep the American Dream alive.
To see more coverage of the bill introduction, and to learn more about the American Franchise Act, visit the Coalition to Save Local Business website at savelocalbusinesses.org.
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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 Federation of Independent Businesses, 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/.