Small Business Groups, Franchisee Associations, Diversity Chambers Hail American Franchise Act
A new letter from local business, advocacy and diversity organizations in nearly every state calls for certainty for franchised small businesses through this new commonsense legislative approach to the joint employer issue, highlighting the “clear, bipartisan support” for America’s local franchise businesses
WASHINGTON, D.C. – Today over 100 business, advocacy, and diversity organizations called on Congress to support the American Franchise Act (AFA), H.R. 5267, which is a new bipartisan legislative approach that would provide long-term certainty to America’s nearly 850,000 franchised small businesses after a decade of changes to the joint employer standard. The legislation is now up to 51 cosponsors in the U.S. House of Representatives.
The letter, which is available here, stresses the AFA’s “common-sense approach to the joint employer issue, which has mired franchise businesses in uncertainty for a decade. By codifying a clear, permanent standard for franchising, the AFA will help ensure that this critical business model-- which generates around $900 billion in annual U.S. economic output and employs 8.8 million workers in every state and district—continues to grow and support local communities.”
“The bipartisan support for the American Franchise Act continues to grow in all corners of the country,” said Erica Farage, spokesperson for the Coalition to Save Local Businesses (CSLB), an organization led by the International Franchise Association (IFA) comprised of dozens of trade associations and franchisee groups. “This legislation is essential to franchise owners who need certainty to keep their doors open, continue creating meaningful jobs, and give back to their communities. We call on Congress to prioritize supporting the small businesses in their states and districts by passing the American Franchise Act.”
Signers of the letter feature 72 state associations and 33 national organizations, including diversity groups like U.S. Black Chambers, Inc., National ACE and the U.S. Hispanic Chamber of Commerce, and franchisee associations like the American Association of Franchisees & Dealers, Asian American Hotel Owners Association, Association of Kentucky Fried Chicken Franchisees, Coalition of Franchisee Associations, Dunkin’ Donuts Independent Franchise Owners, Franchise Business Services, National Association of Black Hotel Owners, Operators & Developers, National Association of Spa Franchises, National Franchisee Association, and North American Association of Subway Franchisees.
The letter was addressed to bill authors U.S. Reps. Kevin Hern (R-OK) and Don Davis (D-NC). Hern, a former McDonald’s franchisee, recently spoke before the U.S. House Education and the Workforce Committee on the need to pass the legislation, and Davis spoke on the House floor in September calling on Congress to pass the measure.
Introduced on September 10, the AFA comes after a decade of four changes to the joint employer standard and would lock in a clear, franchise-specific joint-employer standard to end years of regulatory whiplash that has raised costs, legal risk, and harmed growth for brands, local owners, and their employees. Most recently, the NLRB’s 2023 joint employer rule sought to expand the definition of joint employer to an ambiguous and overly broad standard that threatened the viability of the entire franchise model.
The full legislation can be viewed HERE. For more details on the AFA, click HERE.
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About the Coalition to Save Local Businesses:
The Coalition to Save Local Businesses is an initiative of the National Franchisee Association, EPCON Communities, Family Enterprise USA, Family Business Coalition, National Association of Black Hotel Owners, Operators, and Developers, American Hotel and Lodging Association, American Pizza Community, the Association of Kentucky Fried Chicken Franchisees, CHRO Association, Health and Fitness Association, Home Care Association of America, The International Franchise Association, International Salon/Spa Business Network, International Spa Association, National Federation of Independent Business, 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/.