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Following the 2026 midterm elections, the International Franchise Association (IFA) called on Congress to prioritize passing the bipartisan, bicameral American Franchise Act (AFA) during the remainder of the 119th Congress.
The AFA passed out of the U.S. House Education and Workforce Committee in July and currently has 158 cosponsors in the House.
"IFA congratulates this year's winners and looks forward to working with both parties to protect franchise small businesses and the nine million working Americans they support," said Matt Haller, IFA president and CEO. "With affordability clearly top of mind for voters, Congress has a narrow window to bring immediate relief to America's 832,000 franchise small businesses by passing the bipartisan American Franchise Act. Franchises pay workers well and keep prices low for high-quality goods and services, and the American Franchise Act would enable them to do both for the long term. With further uncertainty looming in the courts, small businesses can't afford to wait."
For more than a decade, franchised businesses have faced changing joint-employer rules driven by legal challenges and policy shifts from one administration to the next. The American Franchise Act would establish a clear, permanent standard for franchisors and franchisees under the Fair Labor Standards Act and the National Labor Relations Act, clarifying when a franchise brand shares legal responsibility for a franchisee's employees.
The legislation has bipartisan support in both chambers of Congress, and the endorsement of the White House and the House Problem Solvers Caucus. The AFA also has broad support across the franchise community, including major franchisee groups and brands, as well as hundreds of state and local business, advocacy, and diversity groups.