No. Small, independent franchisees support the American Franchise Act (AFA) because it creates a clear line between brand protection and the day-to-day management of employees, which remains the sole prerogative of the independent franchisee.

The American Franchise Act is supported by numerous independent franchisee associations, and the leading trade association representing independent franchisee associations, the Coalition of Franchisee Associations, that says, a “consistent, well-defined joint employer standard is beneficial to the entire franchise community.”

A franchisor may still be held jointly liable when it possesses and exercises substantial direct and immediate control over one or more essential terms and conditions of employment of a franchisee’s employees, including when it actually determines wage rates, benefits, work schedules or disciplinary action.

• Preserves franchisee independence: Franchisees are entrepreneurs who invest their life savings, assume significant financial risk and provide employment to millions of Americans. They retain the sole prerogative over day-to-day employee management. This bill would ensure they don’t become middle managers of a corporate brand.

• Enables worker-focused support: The AFA would clarify the federal joint employer standard that previously allowed franchise brands to help franchisees and franchised workers with education, training, compliance assistance, employee-recognition programs and other resources without legal risk.

• Source: https://savelocalbusinesses.com/wp-content/uploads/2026/07/CSLB-AFA-Myth-vs-Fact.pdf
• Source: https://www.franchise.org/wp-content/uploads/2026/05/AFA-Backgrounder-2026.pdf