PRESENTED BY:

May 6, 2025

This week, the North American Securities Administrators Association (NASAA) announced its finalized Model Franchise Broker Registration Act, which establishes a national framework for franchise broker registration, pre-sale disclosure, and recordkeeping.

Why it matters: The model legislation strengthens transparency in the franchise sales process, helps protect prospective franchisees, and aligns with IFA’s Responsible Franchising Principles. It also builds on prior advocacy efforts, including California’s SB 919, and supports clearer standards around broker accountability.

What’s next: IFA will continue working with NASAA, the Federal Trade Commission, and state regulators to advance responsible franchising policies and support sustainable franchise growth.

This week is National Small Business Week (May 3–9). A week that highlights the entrepreneurs driving America’s local economies — including thousands of franchise owners across the country.

Why it matters: Franchises are small businesses with the vast majority being locally owned and operated, employing small teams, creating jobs, and serving as trusted community anchors — even when operating under national brands.

What’s next: Throughout the week, IFA will spotlight franchisee stories and share key data from the Franchising Economic Outlook and Value of Franchising reports, and we encourage you to share your stories about franchise small businesses to ensure lawmakers understand that franchising truly is local.

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On April 28, Rep. Nydia Velázquez (D-NY) and Sen. Ed Markey (D-NY) introduced legislation to restore Small Business Administration (SBA) loan eligibility to Legal Permanent Residents (green card holders).

Why This Matters: Earlier this year, the SBA announced that, effective March 1, 7(a) and 504 loans would be limited to businesses 100% owned by U.S. citizens or nationals.

Why it matters: SBA loans are a critical source of capital for franchise businesses. According to FRANdata, franchisees account for nearly 21% of total SBA 7(a) loan dollars and 14% of 504 loan dollars. The Senate Small Business Committee also reports that the SBA supported $3.7 billion in 7(a) loans and $2 billion in 504 loans to businesses owned by green card holders.

IFA endorsed 39 bipartisan congressional candidates across 10 states ahead of upcoming May primary elections, naming them “Friends of Franchising” for their support of pro-business, pro-franchise policies. The endorsed candidates span Indiana, Ohio, Nebraska, West Virginia, Louisiana, Alabama, Kentucky, Georgia, Oregon, and Pennsylvania.

Why it matters: These endorsements reinforce the franchise community’s bipartisan strength and highlight the importance of electing leaders who understand that franchises are locally owned small businesses.

What’s next: IFA will continue engaging with candidates and policymakers throughout the election cycle to elevate franchise priorities and ensure local business voices are represented in Washington.