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July 1, 2026

House Pushes Back on EU Overreach

Amid IFA’s pushback against the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) — which critics say could extend joint employer-style liability globally — lawmakers have reintroduced the Protect USA Act (H.R. 9385) to shield U.S. franchisors and franchisees from the directive and similar future policies.

Why It Matters: Introduced by U.S. Rep. Scott Fitzgerald (R-WI), the Protect USA Act would protect against foreign mandates like the EU’s CSDDD by preventing the expansion of joint employer-style liability for franchisors and franchisees operating abroad through increased upstream compliance risk.

What’s Next: The Protect USA Act has been referred to the U.S. House Committees on Energy and Commerce and the Judiciary. IFA will continue engaging lawmakers to oppose foreign mandates that undermine franchisee independence.

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Register for the IFA26 Advocacy Summit

There has never been a more important bill for franchising than the American Franchise Act (AFA), and now is our opportunity to get it passed through Congress. We need everyone in franchising to join IFA in Washington, D.C., this September for the IFA26 Advocacy Summit.

Why It Matters: IFA26 Advocacy Summit gives you the opportunity to meet directly with your congressional lawmakers and advocate for passage of the AFA to provide long-term certainty for your business. Mike Layman and Jeff Hanscom of IFA’s Government Relations team recently hosted an exclusive member briefing (Passcode: t%h3bKi1) with an insider update on the AFA and what to expect at this year’s Advocacy Summit. By providing clarity around the joint employer standard, the legislation would protect both your business and the next generation of franchise entrepreneurs.

Take Action: Registration is open! Contact IFA’s Erica Farage with any questions. See you in Washington!

TRIA Reauthorization Clears House

The U.S. House of Representatives voted on June 29 to pass H.R. 7128, the Terrorism Risk Insurance Program Reauthorization Act (TRIA) of 2026 by a vote of 373-15. TRIA is a federal backstop that helps ensure businesses can continue to obtain affordable terrorism insurance coverage.

Dig Deeper: The bill secures a critical long-term extension, pushing the program's expiration to 2034 and providing business owners and lenders with long-term certainty well ahead of the current December 2027 expiration. Ahead of the vote, IFA expressed support for the legislation, noting that reauthorization ensures franchise systems and local owners maintain uninterrupted access to affordable property and liability insurance that is essential to protecting the broader franchise business model from catastrophic market disruptions.

What's Next: Senate Majority Leader John Thune filed cloture on the motion to proceed to the FY27 National Defense Authorization Act (NDAA). Because TRIA has historically been reauthorized as part of the annual defense policy bill, the Senate version (S. 4395) has been offered as an amendment to the NDAA. The Senate is expected to vote on the package when members return in two weeks.