WASHINGTON – With the recent committee passage of the bipartisan American Franchise Act (H.R. 5267) through the U.S. House Education and Workforce Committee, lawmakers, franchise and business professionals, and brands offered their support for the legislation, urging the full U.S. House of Representative to support the measure on the House floor. The legislation now has 148 bipartisan cosponsors in the House with companion legislation in the Senate.

U.S. Rep. Tim Walberg (R-MI): “This legislation codifies the direct control joint employer test for the franchise industry guaranteeing future administrations cannot destroy franchised businesses which will help Americans to start and grow their franchised business with less fear and uncertainty.”

U.S. Rep. Virginia Foxx (R-NC): “The bill preserves the independence of locally owned franchise businesses while ensuring that the actual employer remains responsible for employment decisions. This commonsense legislation protects small business owners, supports job creation, and reinforces the franchise model that has helped so many Americans achieve the dream of owning a business.”

U.S. Rep. Moylan (R-Guam): “Over the last decade, the NLRB’s joint employer rule has changed four times, and the Department Labor’s standard has been revisited three times… It means that franchisees, many of whom are first-time business owners, get less support from their franchisors because more support might mean more liability, and it means that fewer Americans get to own their own business and be their own boss. Basically, the American dream becomes harder to obtain…The American Franchise Act provides that clarity and stability. This is why I’m proud to support H.R. 5267.”

U.S. Rep. Beth Van Duyne (R-TX): Yesterday, the American Franchise Act passed out of the Education and Workforce Committee! As Co-Chair of the Congressional Franchise Caucus, I was glad to join my friend Rep. Kevin Hern in introducing the American Franchise Act to ensure that the franchise model remains strong and protects opportunities for entrepreneurs to start, operate, and grow their businesses.

Sarah Casalan, The UPS Store, President: “The UPS Store supports the American Franchise Act as it preserves the independence of franchise owners and creates a stable, predictable framework that supports small business growth and job creation by codifying the current NLRB rule. This clarity is needed for franchising across the country, including our 5,500+ The UPS Store locations that are independently owned and operated. These small business owners serve as critical hubs in their communities, helping other small businesses grow and thrive. The American Franchise Act would provide the stability needed to protect this model, empower entrepreneurs, and expand access to small business ownership. It reinforces The UPS Store idea that business owners can go into business for themselves, but not by themselves.”

Sam Ballas, President and CEO of East Coast Wings + Grill: “This past Tuesday, the House Education & Workforce Committee passed the American Franchise Act (H.R. 5267) — a major step forward for the more than 832,000 franchise establishments and nearly 8.8 million jobs across our industry. Credit to congressional leadership for recognizing what those of us in franchising have known for years: small business owners need regulatory certainty, not another decade of shifting joint employer standards. This bill delivers the clarity franchisees and franchisors need to plan, invest, and grow.”

Gary Robins, franchisee of Supercuts and Waxing the City: “As a franchisee for over 25 years operating businesses across four states, I’ve seen firsthand how changes to joint employer rules create uncertainty, making it harder to plan, invest, and grow careers. The American Franchise Act would provide the long-term certainty franchisees need while preserving our independence as local business owners so we can focus on our business and the people we serve. The AFA is the most important piece of franchise legislation Congress can pass.”

Dan Drennen, Visiting Angels, Senior Vice President, Brand Administration: The American Franchise Act (H.R. 5267) passed through committee and is headed to the House floor for a vote. This legislation would reestablish the long-held precedent recognizing franchisees as separate, individual businesses and preserve the hard-earned equity franchise owners have worked for! It preserves and protects the distinctly American institution of franchising. This legislation is overdue and needed!

Rosanna Maietta, American Hotel & Lodging Association, President & CEO: “Franchising is the backbone of the American hotel industry and a true path toward achieving the American dream. For tens of thousands of hoteliers, franchising is the most accessible pathway to building a small business in America. AHLA is grateful to Chairman Tim Walberg and members of the committee for recognizing the need to preserve and strengthen this important pathway to entrepreneurship. We look forward to this legislation advancing to the House floor and urge Congress to swiftly pass it.”

Michelle Korsmo, National Restaurant Association, President and CEO: “I applaud the House Education and Workforce Committee on taking the critical step of passing this legislation out of committee this week and advancing it to the full House. The National Restaurant Association looks forward to continuing our work with lawmakers to secure House passage and protect the entrepreneurial opportunities that restaurant franchising creates across the country.”

Center For Individual Freedom (CFIF): “The AFA offers welcome bipartisan opportunity to resolve the debate for the benefit of small businesses, workers and the broader U.S. economy.  Specifically, the AFA would settle the definition of “joint employer,” which has swung wildly in recent years depending upon which party controlled the White House and thus the National Labor Relations Board (NLRB), thereby creating instability and uncertainty for millions of workers and business owners.”

Independent Women’s Voice: “Independent Women’s Voice is pleased to strongly support the American Franchise Act. This legislation would codify a clear and consistent standard for the joint employer relationship between franchisors and franchisees. After years of regulatory attempts to broaden the joint-employer definition to the detriment of franchises, Congress has an opportunity to ensure the franchise model is permanently protected… Independent Women’s Voice strongly supports the American Franchise Act and stands ready to support your efforts to advance these bills through Congress and to President Trump for signature.”

National Taxpayers Union (NTU): “Small businesses are the backbone of the American economy, and this legislation helps protect them from Washington overreach. Notwithstanding the demagoguery surrounding this issue, the American Franchise Act does not strip workers of protections or make them more vulnerable. It simply clarifies who is responsible for employment decisions, preserves liability where real control exists, and stabilizes a legal standard that has become increasingly politicized.”

Taxpayers Protection Alliance: “Some bureaucrats want to bury franchised businesses in an avalanche of regulations, making it next-to-impossible for small business owners to expand operations and hire new workers. Fortunately, lawmakers are poised to consider HR 5267, the American Franchise Act (AFA), which would clarify liability standards by codifying current law on the federal joint employment standard for franchising. For the sake of small businesses and their millions of consumers, Congress must pass this pivotal legislation.”

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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.