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June 24, 2026

IFA Joins Coalition Opposing California Medi-Cal Employer Tax Proposal

The International Franchise Association joined a broad coalition of business organizations, led by the California Chamber of Commerce, in opposition to AB 177, a budget proposal that would require the state to develop a new tax on employers based on the number of employees enrolled in Medi-Cal.

Why It Matters: In addition to increasing costs for employers, IFA is closely monitoring the proposal for potential franchise and joint-employer implications. Similar efforts in Colorado and Oregon raised concerns about assigning liability to businesses based on the actions or status of workers they do not directly employ. IFA and coalition partners warned that AB 177 could discourage business expansion, create new compliance burdens, and establish a troubling precedent for employer liability in California.

What's Next: AB 177 remains part of California's ongoing budget discussions. IFA will continue working with coalition partners and lawmakers to oppose the proposal and monitor for any provisions that could create joint-employer or shared-liability concerns for franchise businesses.

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IFA Releases New American Franchise Act Polling

IFA released new polling by Morning Consult showing that an overwhelming majority of Americans support protecting franchised businesses.

The Big Picture: Conducted nationally and in four key states to build lawmakers support among lawmakers for franchising and the American Franchise Act (AFA), the polling found that:

•  75% of adults want the government to establish stable legal protections for franchise owners.
• 73% of Americans support franchising as a way for brands to grow.
• 72% of Americans say they'd rather shop at brands that expand through franchising than at corporate-owned chains.

What Else: Separately, IFA President & CEO Matt Haller highlighted the growing momentum behind franchising and the need for long-term policy certainty through the American Franchise Act in a Washington Examiner op-ed today, "The Fast-Growing Way Entrepreneurs Are Chasing the American Dream." 

Go Deeper: Mike Layman and Jeff Hanscom of IFA’s Government Relations team hosted an exclusive member briefing (Passcode: t%h3bKi1) with an insider update on the American Franchise Act and what to expect at this year’s IFA26 Advocacy Summit.