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The Coalition to Save Local Businesses, a group of local small business owners, franchise brands, and industry associations, welcomed the endorsement of the American Franchise Act, H.R. 5267, by the U.S. House of Representatives Problem Solvers Caucus, a bipartisan coalition of members, "on a mission to change the culture of D.C."
"The momentum behind the American Franchise Act continues to accelerate, and the endorsement by the U.S. House Problem Solvers Caucus is a testament to the cross-party appeal for America's franchised businesses," said Erica Farage, spokesperson for the Coalition to Save Local Businesses. "Lawmakers in both chambers of Congress have a chance to stand up and protect a uniquely American engine of upward mobility and create certainty that will allow countless small business owners to reach even new heights."
The Problem Solvers Caucus is comprised of 45 U.S. House Members, split by Republicans and Democrats, working to find common ground on issues and legislation. This endorsement was led by U.S. Reps. Chuck Edwards, R-N.C., and Don Davis, D-N.C., the original cosponsors for the American Franchise Act.
Introduced in late 2025, the American Franchise Act (AFA) would codify the federal joint-employer standard in the franchise context that determines when two entities share responsibility for the same employees. The joint-employer standard has changed four times over the past 10 years with every change in administration. The implementation of the broad 2015 standard drove up legal costs by 93% and cost an estimated 376,000 American jobs.
The AFA applies only to the franchisor-franchisee relationship and does not affect joint-employer determinations outside of franchising. The legislation clarifies that, "a franchisor may be considered a joint employer of the employees of a franchisee only if the franchisor possesses and exercises substantial direct and immediate control over one or more essential terms or conditions of the employees of the franchisee," which is consistent with the National Labor Relations Board's 2020 joint-employer rule, which remains in effect today.
The full bill text is available here. A summary of the legislation is available here.