No, nothing in the American Franchise Act affects workers’ ability to exercise their right to form a union.  The AFA is a narrow, targeted bill that would codify the joint employer standard that governed franchise businesses for decades before the 2015 expansion.

• Preserves worker rights: The legislation addresses joint employer liability in franchise relationships, not workers’ rights under federal labor law.

• Maintains joint employer accountability: A franchisor may be considered a joint employer only if it possesses and exercises substantial direct and immediate control over one or more essential terms and conditions of employment of a franchisee’s employees.

• Supports franchisees and workers: The lingering threat of joint employer liability has frozen national brands from working with small, independent franchisees on health plans, retirement benefits, shared training programs and tuition support. The AFA would clarify that standard so brands can provide greater support to their franchisees without the fear of joint liability.

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