Rep. James Comer looks to battle bureaucracy’s impact on franchises.
By Andrew Carlo
The International Franchise Association (IFA) said it is supporting the introduction of new legislation geared toward joint employer
U.S. Rep. James Comer (R-KY) has introduced the “Save Local Business” Act in the U.S. House of Representatives. The bill looks to permanently “clarify the joint employer standard and protect the independence of America’s 831,000 franchise businesses,” according to the IFA.
“The Save Local Business Act provides much-needed stability to the franchise community on the issue of joint employer,” said Michael Layman, IFA chief advocacy officer. “After four changes to the federal joint employer standard in the last decade, certainty and a reasonable, clear, and consistent standard of joint employer is essential to the nation’s 831,000 franchise small businesses’ plan for the future.”
The IFA’s 2025 Roadmap for Economic Growth identifies codifying a joint employer standard, which would preserve franchisee independence and protect their equity, as a top priority, the association said.
“Congress must promote policies that empower small businesses and free them from stifling regulations pushed by an unchecked and unelected federal bureaucracy,” said Congressman Comer. “My bill, the Save Local Business Act, will add common sense to the definition of a joint employer, protect the franchise business model, and reduce bureaucratic headaches for American job creators. Now is the time for job growth and creation, not harmful and unclear regulations.”
Additionally, the IFA said that government regulators have tried to disrupt franchising through recent moves that have changed the joint employer standard. In particular, the association points to the the National Labor Relations Board’s (NLRB) 2023 joint employer rule. That policy looked to expand the definition of joint employer to an ambiguous, broad standard. The move threatened the viability of the entire franchise model, according to the franchise community.
“We are grateful to Rep. Comer for his leadership and look forward to clarifying the joint employer standard once and for all, Layman said.
Previously, the IFA led a lawsuit that resulted in the March 2024 federal court rejection of the NLRB’s 2023 joint employer rule. A previous joint employer rule destroyed 376,000 jobs, cost small businesses $33.3 billion, and led to a 93% spike in lawsuits in the franchise sector alone, the IFA said.
The act has also received the backing of the American Hotel & Lodging Association.
“Franchising is the backbone of the hotel industry, providing a pathway to entrepreneurship for tens of thousands of small business owners,” said Rosanna Maietta, president and CEO of the American Hotel & Lodging Association. “The majority of hotels across the U.S. are small business franchises. This bill will give them the clarity they need to effectively run their business, and we applaud Representative Comer for introducing this commonsense measure.”
IFA membership includes franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology, and business development.
