2025 Road Map: IFA sharpens its focus for the year ahead

With the November elections in the rearview mirror, attention turns to the implications for policymaking in 2025. As the dust settles on the results, two things are clear: economic concerns remain front and center, and franchising is poised to play a major role. According to exit polls from CNN, two-thirds of voters said the economy was in bad shape, and the majority of these voters wanted a new direction. 

The year ahead offers incredible opportunities for the franchising community. At the International Franchise Association (IFA), we have been hard at work on our road map for the year ahead to protect, enhance, and promote the franchise business model.

While certain regulatory threats are poised to end with the changing administration, now is not the time to get complacent or let our foot off the gas. To the contrary, there are a number of proactive policies IFA intends to push. If enacted, these initiatives would unleash our sector to new heights. As we focus on the year ahead, the entire franchise community’s support is essential to success.

Joint-employer standard

First, after a constant back and forth on the definition of a joint employer (four changes in the past decade alone), we will be pushing for a permanent, commonsense joint-employer standard that codifies a narrow definition of a joint employer once and for all. Just as we did with the misguided attempt to expand the definition of joint employer by the National Labor Relations Board (NLRB) in 2023, we will seek to enact a permanent, commonsense, workable standard that protects  independence and the hard-earned equity in franchisees’ businesses and ensures franchise owners continue to receive franchisor support—for good.

Businesses need certainty in the regulatory climate to achieve their true potential. Now is the time to prevent joint employer from becoming subject to the shifting political winds at the NLRB.

Franchise Rule

Second, with new leadership expected at the Federal Trade Commission (FTC), we will work with the commission to update the Franchise Rule for the first time since 2007. Our North Star remains improving disclosure to strengthen franchise relationships and support the growth of responsible franchising across the business model. 

Even with new leadership expected at the FTC, we cannot assume threats to franchising will disappear. IFA is committed to improving the franchise sales process and working constructively with the FTC to finally bring the Franchise Rule into the modern era.

Tax Cuts and Jobs Act

Third, we will work with lawmakers on the extension of the pro-small business provisions in the 2017 Tax Cuts and Jobs Act. Left unaddressed, these tax cuts will expire at the end of 2025. Many in the franchise community have come to rely on these benefits, especially the 20% deduction for income from pass-through businesses, bonus depreciation, interest deductibility, and other key tax policies that will impact franchise businesses. IFA is already working with our congressional franchise champions to prioritize getting this legislation through in the coming year and ensuring America’s 800,000 local franchises are top of mind as this policy is crafted.

Beyond Washington, D.C.

Fourth, the incoming Republican trifecta control of Washington will force organized labor and other opponents of franchising to search elsewhere for favorable climates to advance their agendas. We will remain vigilant for harmful policies originating at the state, city, and county levels. With memories of the Fast Food Accountability and Standards (FAST) Recovery Act still fresh, California remains a potential trouble spot as do Washington state and Minneapolis. From unaccountable labor councils to discriminatory treatment of franchisees to legislation attempting to rewrite the terms of existing franchise agreements, we are working with our allies in the states to defeat threats. We are educating lawmakers on the good the business model brings to their states and localities.

Ending mandates

Finally, the outgoing administration implemented many regulatory policies that hurt small businesses, including franchises. Added mandates that held back growth include the overtime rule that was overturned by a federal judge in November, the FTC’s blanket noncompete rule, and rule changes around independent contractors and corporate transparency requirements.

For any of these harmful policies that remain on the books in the new year, we will work with the incoming administration and members of Congress to overturn and replace them with alternatives that strike an appropriate balance.

There are exciting times ahead. With more than nine in 10 of IFA’s endorsed franchise champions winning their elections, 2025 represents an incredible chance to shape the future of franchising while always remaining vigilant and nimble to respond to new threats that could arise.

IFA intends to stay on offense fighting for franchising so that Americans have the chance to go into business for themselves, but not by themselves, in the years ahead.

Matt Haller is president and CEO of the International Franchise Association.