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May 27, 2026

Faster Labor Contracts Act Poised for Vote

Last week, members of the U.S. House reached 218 signers on a discharge petition to force a full House vote on the IFA-opposed H.R. 5408, the Faster Labor Contracts Act (FLCA).

 

Why It Matters: IFA opposes the FLCA because it would impose binding federal arbitration on franchise businesses and workers—allowing arbitrators with little understanding of local markets, costs, or margins to dictate wages, benefits, and scheduling, while eliminating appeal and contract ratification rights for both franchisees and employees.

 

What’s Next: A U.S. House vote is expected the week of June 8 on this labor bill, which would help unions such as the Teamsters and SEIU secure collective bargaining agreements after a workplace election in support of a union.

House Committee Approves Transportation Bill

Last week, the U.S. House Transportation and Infrastructure Committee approved a “highway bill” known as H.R. 8870, the Building Unrivaled Infrastructure and Long-term Development for America's 250th (BUILD America 250) Act, which would reauthorize federal surface transportation programs.

 

Dig Deeper: IFA supported the bill, which would enhance modern infrastructure essential to franchise businesses nationwide, with a proposed $580 billion, five-year surface transportation reauthorization that addresses key operational and supply chain challenges for local operators.

 

What’s Next: The bill now heads to the full House for consideration, and Congress will need to produce a final agreement ahead of a September 30 deadline to reauthorize the expiring federal transportation law.

IFA Wins on NJ ABC Test Rule

IFA is pleased that New Jersey finalized clear regulations under its “ABC Test” for determining independent contractor status in the state, effective October 2026.

 

Why It Matters: New Jersey’s new independent contractor standard provides for a clear test for franchise businesses, thanks to IFA advocacy securing language from the Department of Labor that will protect franchisor-provided technology and mobile and service-based franchise models. 

 

Dig Deeper: IFA submitted comments on the proposal in August 2025.

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FTC Proposal Threatens Restaurant Franchises

The FTC is exploring whether to extend its Fees Rule to online food delivery platforms, which could lead to prohibitive new compliance costs on franchised restaurant apps — not just third-party services like DoorDash and Grubhub.

 

Why It Matters: In official comments submitted last week, IFA urged the FTC to halt the rulemaking entirely, and if it proceeds, to limit any rule strictly to third-party delivery platforms, noting that six of the seven enforcement actions the FTC itself cited were against third-party providers, not restaurants.

 

What’s Next: IFA is also calling for full federal preemption of the existing state patchwork of junk fee laws, a checkout-stage safe harbor for delivery fee disclosures, and a rigorous small business impact analysis before any rule is formally proposed.

HBCUs Funding Bill Introduced

 

Last week, the IGNITE HBCU Excellence Act (Institutional Grants for New Infrastructure, Technology, and Education for HBCU Excellence Act) was formally reintroduced in both chambers of Congress. 

 

Why It Matters: Led by Reps. Alma Adams (D-NC) and French Hill (R-AR) in the House (H.R. 8791), and Sens. Tim Scott (R-SC) and Chris Coons (D-Del.) in the Senate — the bill is being positioned as a historic, transformational investment to address the estimated $13 billion infrastructure and deferred maintenance deficit across historically Black colleges and universities.

 

What’s Next: IFA expressed support for the bill by noting how franchises play an outsized role in generating wealth creation for underrepresented people from all backgrounds.

Join IFA in Washington This September

 

There’s never been a more historic bill for franchising than the American Franchise Act (AFA), and there’s never been a more important time for you and your colleagues to join IFA in Washington, DC this September at the IFA26 Advocacy Summit to get the bill passed through Congress!

 

Why It Matters: This year’s Advocacy Summit will allow you to meet your congressional lawmakers and push for passage of the AFA, which will provide clear federal labor rules to protect both your business and the next generation of franchising entrepreneurs.

 

What’s Next: Registration is open! Contact IFA’s Erica Farage with any questions.

Upcoming Events:


May 28 | Southeast Michigan Franchise Business Network & Women's Franchise Network Event | REGISTER


June 2 | The Hidden Half of Customer Experience: Where Operations Become the Brand


June 3 | Balancing Franchisor Brand Control and Localized Marketing in Your System


June 9 | The Trust Economy: How Franchise Brands Are Winning (and Losing) Customers in the New Visibility Era


June 11 | FBN Mid-South Meeting


June 11 | Stronger Together: Why Inclusion Drives Franchise Growth



June 12 | FBN Houston Meeting


June 16 | Territory Mapping: The New Era of Franchise Growth


June 24 | Closing the Franchise Gap in the Age of AI Search: Why Local Social Is Where HQ and Franchisees Meet


June 25 | Network. Engage. Grow.: IFA Regional Events & Mentorship



September 14-16 | IFA26 Advocacy Summit | REGISTER



September 25-26 | The IFA World Franchise Show | REGISTER


November 16-18 | IFA26 Emerging | SAVE THE DATE

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