Bicameral and bipartisan legislation empowers America’s nearly 850,000 franchise small businesses to continue operating independently and provides much-needed clarity and certainty around joint employer standard; passage of the bill remains IFA’s top advocacy priority in 2026

WASHINGTON, D.C. – The International Franchise Association (IFA) today praised the introduction of the bipartisan “American Franchise Act” in the U.S. Senate, heralding the first-of-its-kind legislation as a landmark moment for America’s nearly 850,000 franchise small businesses. Introduced by U.S. 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), the bill is a companion to the American Franchise Act (H.R. 5267), introduced in the U.S. House of Representatives in September, which is up to 66 cosponsors on both sides of the aisle.

“This is a watershed moment for both the American Franchise Act and the future of franchising, and we’re grateful to Senators Marshall and King for their steadfast leadership,” said Matt Haller, IFA President and CEO. “With a growing bipartisan coalition of support in both chambers of Congress, Congress can resolve a decade of uncertainty around the joint employer issue that has threatened franchisors and franchisees alike – providing certainty for franchising for generations to come and allowing more Americans to go into business for themselves, but not by themselves through franchise ownership.”

“The American Franchise Act marks the end of uncertainty when it comes to the joint employer standard,” said Senator Marshall. “With clear guidelines, entrepreneurs can feel empowered to venture into the franchise model and live out their American dream of owning a business.”

“Franchises are a proven pathway to entrepreneurship, especially for first-time small business owners, and contribute to local economies nationwide,” said Senator King. “The American Franchise Act strikes the right balance between protecting workers and preserving the independence of local business owners. This legislation clarifies federal law and strengthens economic opportunity without undermining the franchise model that supports millions of American jobs.”

The AFA comes after a decade of changing joint employer rules 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.

In its 2025 Roadmap For Small Business Growth, IFA identified codifying a joint employer standard that preserves franchisee independence as its top priority. IFA will continue leading a full-scale national and regional advocacy push for the legislation through its membership and as a founding member of the Coalition to Save Local Businesses (CSLB).

For more details on the AFA, click HERE. The Senate legislation can be viewed HERE.

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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 831,000 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.