IFA: Momentum Grows for American Franchise Act With Problem Solvers Caucus Endorsement

The International Franchise Association has highlighted growing momentum behind the American Franchise Act (H.R. 5267) with a formal endorsement from the Problem Solvers Caucus, a bipartisan group in the U.S. House of Representatives. This endorsement from the caucus, which is focused on finding practical solutions to national issues, represents broader recognition of the need for “uniform standards for franchise relationships under federal labor law.”

“The Problem Solvers Caucus endorsement validates the bipartisan nature of this bill and shows that moderate House members on both sides of the aisle are ready to support this measure becoming law,” IFA President and CEO Matt Haller said. “The American Franchise Act would provide hundreds of thousands of small businesses with certainty to operate, create jobs, and give back to their communities without the fear of a changing joint-employer standard every four to eight years. We appreciate the Problem Solvers Caucus’ recognition that this legislation should be a priority to protect franchised small businesses in every community across the nation.”

Unclear labor standards have created hiccups for franchisees looking to invest and plan for the future, creating uncertainty around franchisor support and guidance.

The American Franchise Act provides clear standards, outlining when a franchisor can be treated as an employer and when joint-employer liability applies. It makes “clear that joint-employer liability applies only to situations where the franchisor directly controls the essential terms and conditions of employment, such as hiring, firing, compensation, or scheduling,” the Problem Solvers Caucus said in a statement.

The bill has continued to gain traction in Congress with bipartisan support building. The American Franchise Act currently has dozens of cosponsors in the House and companion legislation introduced in the Senate, representing growing alignment on the issue.

For the broader franchise community, the endorsement reflects a recognition of the value that franchisees bring to their own communities as independent small business owners and support for predictable rules that will empower them to continue growing and serving their communities.

Read the IFA press release here.