Rule would give franchise owners the clarity they need to offer 401(k) plans with more investment choices – helping workers build bigger retirement savings and ultimately improving retention

WASHINGTON, D.C.  – The International Franchise Association (IFA) submitted comments supporting a new U.S. Department of Labor (DOL) rule that would make it easier — and less risky — for franchise small business owners to offer strong retirement plans to their workers.

“Franchise businesses are small businesses, and this rule gives them something they have been asking for: clear rules and peace of mind,” said Sarah Davies, IFA General Counsel and Executive Director of the IFA Law Center. “A lot of owners want to offer strong retirement plans, but the fear of being sued — and the rising insurance costs that come with it — holds them back. This rule removes that roadblock and offers workers access to a wider range of investments. Better retirement benefits help owners keep good workers, and they help those workers build a more secure future. We urge the Department to finalize this rule quickly so that more franchise employees can get the retirement opportunities they deserve.”

Published in March 2026 to carry out President Trump’s Executive Order 14330, Democratizing Access to Alternative Assets for 401(k) Investors, the proposed rule spells out commonsense steps a responsible employer should take when choosing investment options for a (401)k, including options that go beyond traditional stocks and bonds.

In its comments, IFA outlines three core arguments about the rule:

1. It is consistent with decades of existing law and court decisions — this is a clarification, not a radical change.
2. It gives employers clear, dependable protection when they offer these investments responsibly.
3. It encourages more workers to save for retirement by giving them better and more diverse options.

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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 more than 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.