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March 18, 2025

NEW! Franchise Policy Pulse

Watch the first edition of Franchise Policy Pulse - IFA's new video briefing on the policies shaping franchising.

IFA Chief Advocacy Officer Michael Layman breaks down the latest on the American Franchise Act and highlights several state legislative actions that could impact your franchise business.

American Franchise Act

South Carolina Introduces Joint Employer Bill

What’s Happening: Sen. Tom Davis (R) has introduced S.1007 to clarify that franchisees are independent employers and that franchisors are only considered employers when they exercise direct and immediate control over essential employment decisions.

Why It Matters: The South Carolina measure is the third joint employer clarification bill IFA has supported during the 2026 state legislative session, and would join over 20 similar state laws that protect franchising from expanded joint liability.

What’s Next: The bill has been referred to the Senate Labor, Commerce & Industry Committee, and a subcommittee hearing is expected in the coming weeks.

Missouri Senate Considers Franchise Bill

What Happened: In Missouri, HB 1644 would also clarify joint employment rules for franchising, and it received a hearing before the Senate Committee on Judiciary and Civil and Criminal Jurisprudence.

Why It Matters: HB 1644 would clarify that franchisors are not employers of franchisees or their employees unless they directly control key employment decisions.

What’s Next: IFA and the American Hotel & Lodging Association submitted testimony in support of HB 1644 at the hearing, and the Senate Judiciary Committee is expected to vote on the bill after lawmakers return from spring break on March 20.

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Maryland Senate Advances Disclosure Bill

What’s Happening: The Maryland Senate unanimously passed SB 415, IFA-supported legislation to modernize the state’s Franchise Registration and Disclosure Law.

Why It Matters: The legislation aims to codify a piloted Maryland program to streamline the franchise registration process that debuted this year, which was designed to help franchise businesses expand and create jobs in Maryland.

What’s Next: The bill cleared both the Senate Finance Committee and the full Senate and now heads to the House.

Connecticut Scheduling Bill Moves Forward

What’s Happening: IFA is concerned that Connecticut’s SB 436 would require certain retail, food service, hospitality, and long-term care employers with 500+ employees to post schedules 14 days in advance, provide additional pay for schedule changes, and follow mandatory rest-period rules between shifts.

Why It Matters: IFA is specifically concerned that the bill counts employees across large brands; many locally owned franchisees could be regulated based on the size of the national franchise system, limiting their ability to adjust staffing to real-time business needs.

Dig Deeper: The proposal mirrors predictive scheduling bills introduced in prior sessions, and IFA submitted a letter opposing the bill to the Connecticut Joint Committee on Labor and Public Employees.