Government Relations Update: American Franchise Act Gathering Steam

PRESENTED BY:

April 8, 2025

American Franchise Act Gathering Steam

What Happened: While Congress remains in its two-week recess, the American Franchise Act (AFA) has reached a major political milestone—surpassing 100 cosponsors in the House, including 16 Democrats.

Dig Deeper: Learn more by listening to the latest episode of the What’s Next in Franchising podcast, where IFA’s Haider Murtaza discusses the legislative pathways for the AFA and explains why it is essential to protecting the franchise model.

What’s Next: This surge in support has triggered the first major organized opposition from labor groups, led by the AFL-CIO. If you would like to advocate on behalf of your business, contact IFA’s Erica Farage. The IFA team can help connect you with your local lawmakers.

Colorado Healthcare Employer Fee Advances

What Happened: Colorado bill HB 26-1327, which creates a new employer healthcare fee, cleared both the House Health and Finance Committees last week.

Why It Matters: As drafted, the bill could risk treating franchisors as the “employer” of franchised employees. IFA has proposed amendments and is actively working with bill sponsors Rep. Feret and Sen. Mullica to address joint employer concerns and protect Colorado franchise businesses.

What’s Next: IFA participated in a stakeholder meeting earlier this week and continues working with the sponsor on amendments ensuring clarity around the “employer” definition. HB 26-1327 now heads to the House Appropriations Committee.

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Join Us at IFA26 Legal

What Happened: Stay ahead of the legal and regulatory issues shaping franchising by attending IFA26 Legal, taking place May 17–19 in Washington, D.C.

Why It Matters: Sessions focus on the practical application of franchise law, equipping franchisors, franchisees, and supplier members with the tools needed to navigate today’s complex business and regulatory environment.

What’s Next: Register today and don’t miss the opportunity to learn from leading legal experts at this essential industry event.