Letter stresses the growing momentum for the new commonsense, bipartisan approach to the joint employer issue; highlights the “clear, bipartisan support” for the franchise model, which is responsible for the creation of local businesses in every district and state

WASHINGTON, D.C. – The International Franchise Association (IFA) today led a coalition letter of more than 100 business, advocacy, and diversity organizations calling on Congress to support the bipartisan American Franchise Act (AFA), H.R. 5267, which is a new legislative approach to provide long-term certainty to franchised businesses. The legislation is now up to 51 cosponsors in the U.S. House of Representatives.

“As the momentum for the American Franchise Act continues to grow on Capitol Hill, we’re proud to lead this coalition of powerful organizations urging lawmakers to act swiftly,” said Michael Layman, IFA Chief Advocacy Officer. “Ending the uncertainty around the federal joint employer standard will protect the independence of small businesses and allow the franchise model to create more opportunity in all corners of this country. For lawmakers on both sides of the aisle focused on addressing their constituents’ economic concerns, the American Franchise Act represents an opportunity to make meaningful progress in a bipartisan manner.”

The letter, which is available here, stresses the AFA’s “commonsense approach to the joint employer issue, which has mired small businesses in uncertainty for a decade, especially franchises. 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 full list of signers to the letter includes 72 state associations, and 33 national organizations, including franchisee associations, such as 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; diversity groups, including U.S. Black Chambers, Inc., National ACE and the U.S. Hispanic Chamber of Commerce; and other state and local Chambers of Commerce.

The letter was addressed to bill authors U.S. Reps. Kevin Hern (R-OK) and Don Davis (D-NC), the lead sponsors of the bill in the House. 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 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.

For more details on the AFA, click HERE. The full 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.