No. The American Franchise Act (AFA)  would protect franchise small business owners by clarifying the federal joint employment standard for the long term. The franchise model allows aspiring business owners to go into business for themselves, but not by themselves, and this legislation provides greater stability for brands to expand through franchising and entrepreneurs to pursue their dreams.

Franchise businesses are independently operated, and franchised employees do not belong to a franchisor. The AFA would clarify the federal joint employment standard so those lines are clear for local franchise owners, franchisors and franchise employees.

• Supports first-time business owners: Sixty-four percent of local franchise owners are first-time business owners. Franchise businesses are more likely to be owned by people of color, women and veterans than non-franchise businesses.

• Strengthens local communities: Eighty-five percent of franchise owners live in the community where they operate. Eighty-three percent of franchisees give to local charities that fund schools, sponsor youth sports and support local nonprofits and charities.

• Protects independent ownership: Franchisees are entrepreneurs who invest their life savings, assume financial risk and provide employment to millions of Americans.

• 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