White House Endorses American Franchise Act Amid Growing Bipartisan Support
The American Franchise Act, a bipartisan bill aimed at clarifying the joint employer standard in U.S. franchising, received a significant boost in September 2026 when the White House announced its full support. This move aligns with ongoing efforts by the International Franchise Association to stabilize franchising regulations after a decade of uncertainty.
The American Franchise Act, introduced in the U.S. House of Representatives in September 2025, aims to provide clarity and stability to the joint employer standard within the franchising industry. This standard determines when franchisors and franchisees share employer responsibilities for the same group of employees. Over the past decade, changes to this standard have created considerable uncertainty for businesses. The bill seeks to establish a definitive legal framework to empower entrepreneurs operating in the franchising sector. As of early September 2026, the bill has garnered robust bipartisan support with 158 co-sponsors in the House and a companion bill introduced in the Senate in December 2025. (1)(2) [1][2]
A significant development occurred in September 2026 during the International Franchise Association’s Advocacy Summit in Washington, D.C., where the White House publicly endorsed the American Franchise Act. Vince Haley, Director of the White House Domestic Policy Council, announced the administration's backing, signaling strong federal support for the legislation. This endorsement marks a crucial milestone and is expected to influence forthcoming legislative proceedings. (3) [3]
The International Franchise Association (IFA), which has been actively advocating for this legislation, regards the American Franchise Act as essential for ensuring the future viability of franchising in America. The organization highlights that the decade-long fluctuations in the joint employer standard have impeded business confidence and strategic decisions. The IFA considers the bill's passage a top priority in 2026, aiming to solidify long-term certainty for franchisors and franchisees alike. (2)(4) [2][4]
Although the legislation is U.S.-centric, its focus on enhancing regulatory clarity carries potential lessons for other franchising markets, such as Australia. The Australian franchising sector recently underwent considerable regulatory reforms, notably changes to the Franchising Code of Conduct enacted from April 2025, with some provisions effective November 2025. These reforms emphasize increased transparency and fairness, reflecting a global trend towards stabilizing franchising relationships. This parallel development may offer insights into the impact of regulatory certainty on franchise operations internationally. (5) [5]
Sources
- Senators Marshall & King Introduce Bipartisan Legislation Codifying the Future of the Joint Employer Standard - Senator Roger Marshall
- What Is the American Franchise Act? - International Franchise Association
- White House Backs the American Franchise Act as IFA Closes Its Largest-Ever Advocacy Summit | Go Global Holdings
- IFA Applauds Committee Passage of American Franchise Act - International Franchise Association
- Guidance on changes to the franchising code | ACCC