This One Federal Standard Is the ‘Lynchpin’ of Franchising — And Congress Could Make It Permanent

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In a letter to The Wall Street Journal, International Franchise Association President Matt Haller urges Congress to pass a bipartisan bill that could permanently protect the rule keeping 9 million franchise jobs alive.

The American Franchise Act would make the federal joint employer standard permanent. Haller calls it “the lynchpin of the entire model.” Without it, franchising — which spans 300 industries from hotels to gyms to swim lessons — can’t function. The standard determines whether franchisors like McDonald’s are legally responsible for employees at individual franchise locations. The bill has support from more than 100 House members and would lock in these protections permanently.

Haller is pushing Republicans to act before the November midterms, arguing that franchising creates jobs across communities, with 85% of franchisees living and working where they operate. “Congress should act on the AFA now,” Haller writes, urging lawmakers to protect local franchises from regulatory uncertainty that could wipe out the business model entirely.