During U.S. House Small Business Committee hearing, both franchisor and franchisee witnesses reinforce community impacts of franchising and outline policy priorities necessary to support small business growth

WASHINGTON, D.C. – Today, franchisor and franchisee members of the International Franchise Association (IFA) testified before the U.S. House Small Business Committee, highlighting the positive impact of the more than 830,000 franchise small businesses in America and urging lawmakers to implement policies that will allow the franchise model to thrive and create more economic opportunity for all. Witnesses at the hearing, entitled “A Small Part in A Big Company: Examining the Power of Franchising in the American Economy,” included:

• Randy Cross, franchisee and franchisor, Fish Window Cleaning in Michigan and Missouri
• Craig Wright, CEO, Aqua-Tots Swim School in Mesa, Arizona
• Jennifer Beaudoin, franchisee, Buffalo Wild Wings in Virginia

Among the policy priorities raised by the witnesses were:

• Codifying into law a narrow joint employer standard that provides clear rules for franchisors and franchisees alike.
• Making permanent the pro-small business provisions within the Tax Cuts and Jobs Act (TCJA), including:
  • The Section 199A deduction that provides passthrough businesses with a 20% deduction for qualified business income.
  • Bonus depreciation which allows businesses to deduct a large percentage of the cost of eligible assets in the year they are purchased.
  • Interest expense deductions.
  • Estate tax exemption.
• Fully repealing of the Corporate Transparency Act (CTA).
• Increasing access to capital at the lending programs at the Small Business Administration, where historically franchises have represented about 20% of SBA loans by dollar volume.

The full hearing can be viewed HERE.

“We are grateful to Chair Williams and the entire House Small Business Committee for holding a hearing to highlight franchising, a business model that has benefitted thousands of entrepreneurs and millions of workers across the more than 830,000 small business locations in America,” said Matt Haller, IFA President and CEO. “We look forward to working with members of Congress on both sides of the aisle on commonsense tax and regulatory policies that will support our model and the upward mobility it provides.”

A full copy of Cross’ testimony is available HERE.

A full copy of Wright’s testimony is available HERE.

A full copy of Beaudoin’s testimony is available HERE.

The policies discussed today were first outlined in IFA’s 2025 Roadmap For Small Business Growth. Additionally, many of the provisions were also included in the tax legislation that passed the U.S. House Ways and Means Committee earlier this week.

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About the International Franchise Association:

Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations, and educational programs to protect, enhance and promote franchising and the approximately 830,000 franchise establishments that support nearly 8.8 million direct jobs, $896.9 billion of economic output for the U.S. economy, and almost 3 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology, and business development.