IFA releases new data showing significant impact of key provisions in the “One Big, Beautiful Bill” including the 199A Deduction, Bonus Depreciation, Business Interest Deduction, No Tax on Tips & No Tax on Overtime

WASHINGTON, D.C. – Today, nine franchise owners from around the country, along with IFA President and CEO Matt Haller, were invited by President Donald Trump to a White House event urging Congress to pass the “One Big, Beautiful Bill,” as new IFA data outlines the clear impact of the tax provisions for nearly all franchise small businesses. Conducted in partnership with research firm FRANdata, the analysis highlights several provisions of specific interest to franchising, which were discussed by the group during today’s event.

“The numbers are clear: the tax provisions in the One Big, Beautiful Bill will have a hugely positive impact on America’s 830,000 franchise small business owners and their 9 million employees across a range of industries, from restaurants to retailers to hotels and home services,” said Haller. “IFA, our member brands, and franchise owners have been laser-focused on ensuring permanent tax relief. IFA thanks President Trump for putting the importance of protecting franchise small business owners front and center, and lawmakers for their work to get this bill across the finish line.”

Franchisees attending today’s White House event included:

  • Jerry Akers – Palo, Iowa (Great Clips, The Joint Chiropractic, and ZDynamix)
  • David Barr – Atlanta, GA (Capriotti’s Sandwich Shop, KFC, Taco Bell, and others)
  • Randy Cross – Grand Rapids, MI/Missouri (Fish Window Cleaning)
  • Tamra Kennedy – St. Paul, Minnesota (Taco John’s)
  • Jesse Keyser – St. Louis, MO (Sport Clips, Waxing the City, Oxi Fresh Carpet Cleaning)
  • David Ostrowe – Oklahoma City, OK (Burger King, Blaze Pizza, Taco Bell)
  • Gary Robins – Kennett Square, PA (Supercuts, Waxing the City)
  • Jyoti Sarolia – San Diego, CA (Ellis Hospitality)
  • Clement Troutman – Odenton, MD (Tropical Smoothie Café and PJ’s Coffee)

Coinciding with the event, IFA’s new analysis shows the specific impact of the tax provisions in the U.S. House version of the legislation that passed the on May 22, 2025. These priorities were outlined in IFA’s Roadmap for Small Business Growth released at the start of the year.

Proposed Tax Changes Impact to Franchising
199A Deduction An estimated 73% of franchisors and 98% of franchisees are pass-through entities.
Bonus Depreciation With the extension of bonus depreciation, franchising is estimated to expense an additional $16 billion in year one.
Business Interest Deduction By adjusting the business interest deduction to use EBITDA instead of EBIT, franchising will be able to deduct an additional $5.8 billion of interest.
No Tax on Tips By implementing no tax on tips, franchise employees are estimated to save a total of $6 billion in federal taxes.
No Tax on Overtime Should taxes on overtime be eliminated, franchise employees are estimated to save a total of $311 million annually.

 

Additionally, in recent months, IFA members have testified before the U.S. House Small Business Committee and the Joint House and Senate Small Business Committee highlighting the positive impact of the more than 830,000 franchise small businesses in America, and urge lawmakers to implement policies that will allow the franchise model to thrive and create more economic opportunity for all.

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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 approximately 830,000 franchise establishments that support nearly 8.8 million direct jobs, $896.9 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.

Press Contact

Katherine Knight Patterson
Katherine Knight Patterson

VP, Communications

202.662.0783

kpatterson@franchise.org

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