Small Business Leaders Urge Congress to Advance American Franchise Act
Real Housewives star Angie K., along with franchise owners, appear before U.S. House Small Business Committee to stress importance of the AFA to the future of franchise small businesses
WASHINGTON, DC – Today, Real Housewives’ Angie Katsanevas, along with three franchise owners, appeared before the U.S. House Small Business Committee urging lawmakers to support policies that will help small businesses grow, especially the bipartisan American Franchise Act.
Titled “Local Ownership, National Brands: How Franchising Is A Pathway To Entrepreneurship,” the hearing featured testimony from Katsanevas, founder and franchisor of salon brand Lunatic Fringe and a cast member of The Real Housewives of Salt Lake City, Clement Troutman, U.S. Navy Veteran and franchisee of Tropical Smoothie Café and PJ’s Coffee in Maryland, along with Tina Patel of Promise Hotels and Rico Macaraeg, co-founder and CEO of StripeWell.
“Franchising gave my family the ability to take our trials and create a model with a tried-and-true blueprint that allows others to be successful,” said Katsanevas, who co-founded Lunatic Fringe with her husband, Shawn Trujillo, in 1999. “My story is only possible through franchising, which lets people who couldn’t or wouldn’t otherwise start a business from scratch become entrepreneurs and business owners in their own communities. Perhaps the most important thing Congress can do to protect the franchise model is to enact the bipartisan, bicameral American Franchise Act.”
“The American Franchise Act ensures I remain an independent employer, preventing the government from treating me as a mere middle-manager of a large corporation,” added Troutman, who runs his family business with his wife and daughter and employs nearly 80 people across two locations in Maryland. "Franchising is a uniquely American engine of upward mobility. By supporting the American Franchise Act, Congress can protect the dreams of thousands of veterans and family business owners across the country.”
In addition to the American Franchise Act, witnesses touted the impact of key small business provisions in last year’s “One Big Beautiful Bill” legislation, such as the 199A deduction, the Work Opportunity Tax Credit (WOTC) and making the estate tax exemption permanent. They also highlighted the importance of the Small Business Administration (SBA) and the access to capital that its lending programs provide for entrepreneurs.
Introduced in late 2025, the American Franchise Act (AFA) (S.3525/H.R.5267) would codify the 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 power in the White House. The implementation of the broad 2015 standard drove up legal costs by 93% and cost an estimated 376,000 American jobs.
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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/.