IFA-led efforts led to halting the devastating 2023 joint employer rule; Says now is the time to end the regulatory ping pong around the federal joint employer standard by passing the American Franchise Act

WASHINGTON, D.C.  – Today, the International Franchise Association (IFA) issued the following statement after the National Labor Relations Board (NLRB) officially withdrew the 2023 federal joint employer rule that would have expanded joint employment between franchisors and franchisees:

“While the development is welcome to the franchise community, it only reinforces the need for the bipartisan American Franchise Act,” said Matt Haller, IFA President and CEO. “When the 2023 rule was issued, IFA vowed to use every tool available to protect franchising from the devastation it would have inflicted on our model, and we’re proud to have achieved that goal. Now, the regulatory ping pong must end once and for all, and the American Franchise Act is the only vehicle to achieve this imperative. Franchising is a pathway to entrepreneurship for Americans from all walks of life, and its future cannot depend on the political whims of each administration. Ending the uncertainty around joint employer will create untold opportunity for thousands of would-be entrepreneurs, and now is the time to get it done.”

Introduced last fall in both chambers of Congress, the American Franchise Act locks in a clear, franchise-specific joint-employer standard that would end the decade of regulatory whiplash that has raised costs, legal risk, and harmed growth for brands, local owners, and their employees.

The decision today follows more than a year of IFA advocacy and action from the IFA Law Center to stop the NLRB’s 2023 joint employer rule, including advocating for a bipartisan Congressional Review Act resolution that passed both the U.S. House and Senate on a bipartisan basis. Following this uncertainty, IFA has led the charge on the American Franchise Act, which is up to 79 bipartisan cosponsors in the U.S. House.

For more details on the legislation, click HERE. The Senate legislation can be viewed HERE, and the House version is available 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 832,000 franchise establishments that support nearly 8.8 million direct jobs, $907.3 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.