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July 22, 2026

House Committee Approves American Franchise Act

In landmark news for franchising, the U.S. House Education and Workforce Committee voted 18-15 on July 21 to pass the American Franchise Act (H.R. 5267), sending the bipartisan bill to preserve the franchise business model on its first step forward in the legislative process.

What’s Next: The AFA now heads to a full House vote this fall, and it means the bill has great momentum heading into the IFA26 Advocacy Summit this September! Make a plan to join franchise business peers in Washington for this pivotal event.

House Committee Passes Heat Regulation Bill

This week, the U.S. House Education and Workforce Committee also approved the IFA-supported Heat Workforce Standards Act of 2025 (H.R. 6213), legislation that would prohibit the Department of Labor from finalizing a challenging proposed heat injury and illness prevention standard from the Occupational Safety and Health Administration.

Why It Matters: The bill would prevent implementation of a “one-size-fits-all” federal heat standard that could impose significant compliance burdens on restaurant and service-based franchise businesses, while preserving employer flexibility to protect workers based on industry-specific needs.

What's Next: IFA will continue advocating for the bill as it advances through Congress and will monitor the committee's action and any subsequent legislative developments.

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Senate Committee Considers Sonderling Nomination

Last week, the U.S. Senate HELP Committee held a confirmation hearing for Labor Secretary nominee Keith Sonderling, where Chairman Bill Cassidy (R-LA), Sen. Roger Marshall (R-KS) and Sen. Josh Hawley (R-MO) each touted the value of franchise businesses as they considered Mr. Sonderling’s nomination.

Why It Matters: Among other topics, senators discussed the need for a clear joint employer standard and reinforced the need for the Department of Labor to distinguish locally owned franchise businesses from large corporations.

What's Next: The Committee will vote on Sonderling’s nomination on Thursday, July 23, and IFA continues to support his confirmation and monitoring DOL’s pending joint employer rulemaking.

Oregon’s Packaging EPR Law Goes to Trial

What Happened: The nation’s first courtroom challenge to a packaging Extended Producer Responsibility (EPR) law concluded in Portland, where the National Association of Wholesaler-Distributors is challenging Oregon’s Plastic Pollution and Recycling Modernization Act as an unconstitutional burden on interstate commerce and improper delegation of authority, following a five-day bench trial after a preliminary injunction paused enforcement in February 2026.

IFA’s Role: The IFA Law Center and Restaurant Law Center filed an amicus brief supporting a permanent injunction, arguing that Oregon’s EPR framework does not account for franchise systems where packaging decisions and costs are shared among franchisors, franchisees, suppliers, distributors, and manufacturers, and that the law improperly uses franchise affiliation as a proxy for size when determining producer status.

Why It Matters: As six additional states have enacted packaging EPR laws, the court’s decision could have significant implications for franchise systems nationwide by determining whether EPR requirements designed for vertically integrated manufacturers appropriately apply to franchise networks. The court is expected to issue a ruling by the end of August 2026, with an appeal likely regardless of the outcome.