Passage of the American Franchise Act would bring greater clarity to individual business ownership.

By Larisa Walega

As businesses constantly navigate economic uncertainty, one thing that should remain consistent is a franchise owner’s ability to build and grow. Instead, the rules around independently owned and operated franchise locations have changed four times in the last decade – making it challenging just to keep up with the current laws, let alone focus on the growth and, ultimately, the success of each franchise-owned location.

But there’s greater clarity on the horizon through the American Franchise Act.

At its core, the franchise business model is built on the balance of two powerful ideas: the strength of a trusted brand and the independence of a local business owner. That balance has allowed franchise businesses to create opportunities in communities nationwide for generations.

For the last 10 years, however, the franchise model has been pulled into a debate over “joint employer” standards that often miss how franchising works. Franchisees aren’t branch managers; they’re autonomous business owners who hire their own employees, manage daily operations, and make local decisions to shape their success.

Franchisors provide the systems, standards, training, and support that protects the brand and helps franchisees stay competitive and grow their business.

The American Franchise Act draws a clear legal line between those distinct roles, preserving the division that makes franchising work. Without that clarity, franchisees risk losing their independence to operate as an individual business owner, while franchisors are left to choose between over-controlling local businesses or withdrawing the support that helps them grow.

When that line is blurred, the franchise model becomes vulnerable to inconsistent legal interpretations that undermine local ownership.

Franchising succeeds when both sides are able to put their primary focus on the immediate tasks at hand and do what they do best.

Franchisees should remain in control of the day-to-day decisions that define local ownership, from hiring and managing employees to serving customers in their own communities.

Franchisors, in turn, should be able to concentrate on strengthening the brand and providing training and operational best practices without having to fear that those efforts would be mischaracterized as direct employer control.

For Michigan-based franchise companies like Ziebart International Corp. in Troy, that distinction is critical.

Founded and headquartered in metro Detroit for more than 65 years, Ziebart has grown from a Michigan-born business into an internationally recognized franchise brand.

Ziebart adopted the franchise model just three years after opening its original rustproofing shop; the first franchise agreement was signed in 1962. Today, 90 percent of Ziebart’s U.S. stores are owned and operated by franchisees.

We’ve seen firsthand how the franchise model helps people build businesses of their own – whether they’re a first-time entrepreneur or a seasoned business owner looking to reinvest in their community.

That message is especially relevant in Michigan. Our state has emerged on the International Franchise Association’s (IFA) Eco-nomic Outlook list of top 10 states for franchise growth in 2026.

In fact, the report projects there will be more than 25,000 franchise establishments open and in operation across the state this year, supporting more than 264,000 jobs and generating $27.2 billion in combined economic output in the state.

Michigan has already shown meaningful bipartisan support of the American Franchise Act, with U.S. Rep. Hillary Scholten (D-Grand Rapids) as an original co-sponsor of Legislation and U.S. Rep. John Moolenaar (R-Midland) also backing the bill. This joint recognition of the value of protecting local ownership within franchising is imperative to the future of the franchise business model.

Beyond the economic impact, the true power of franchising lies in the opportunities it creates for people.

As one of the most accessible paths into business ownership, franchising gives aspiring entrepreneurs the chance to go into business for themselves, but not by themselves.

At Ziebart we’re strong supporters of veterans entering franchising, because the model naturally aligns with the qualities many veterans possess: leadership, discipline, accountability, and the ability to execute within a proven system.

Franchising allows those strengths to translate into long-term business success and local impact as veterans transition into civilian life.

I’ve seen that same opportunity through another lens, as well.

As the first female C-suite executive in Ziebart’s 65-plus-year history and the former chair of IFA’s Women’s Franchise Committee, it’s personal to me that franchising continues to open doors for leaders from all backgrounds. Franchising works best when it expands opportunity for veterans, for women, for first-time business owners, and for those pursuing the American dream through local ownership.

That’s exactly why it’s important that we find greater clarity and consistency around the franchise model. The American Franchise Act would reinforce the foundation that has made franchising such a powerful engine for entrepreneurship, both in Michigan and across the country.

LARISA WALEGA

Chief growth officer at Ziebart International Corp., an automotive appearance and protection services company headquartered in Troy. The company has 12 locations across Michigan and is active in nearly 40 countries.

Read the full article on DBusiness page 85:

Michigan Franchising

👉 https://www.dbusiness.com/digital-editions/july-august-2026/