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April 15, 2025

Virginia Enacts First-Ever Franchise Noncompete Ban

On Tax Day, IFA Celebrates Tax Relief

Today is Tax Day, the first April 15 filing since the passage of last year’s “One Big Beautiful Bill” Act that delivered long-awaited tax relief and growth opportunities for franchise small businesses.

Why It Matters: The transformative provisions in the tax package impacting franchisors include:

• Permanent extension of the Section 199A qualified business income deduction
• Restoration of 100% bonus depreciation for qualified investments
• Making permanent estate & gift tax relief
• New deductions for tips and overtime 

Our Thought Bubble: Yesterday, IFA hosted Labor Secretary Lori Chavez-DeRemer at two Woodbridge, VA franchised spas, where business owner Toya Evans and her tipped employees shared the importance of No Tax on Tips and the importance of the franchise model to American workers.

IFA Pushes Back on FTC “Click to Cancel” Rulemaking

What Happened: The IFA Law Center submitted comments to the FTC’s Negative Option ("Click-to-Cancel") ANPRM, arguing that a new rulemaking is unnecessary and raising significant procedural and substantive concerns with potential changes to the rule. 

Why It Matters: The IFA Law Center opposed the FTC’s 2024 Negative Option Rule that was subsequently vacated by a federal court in 2025 for procedural deficiencies and warned that new proposals could impose substantial compliance costs—particularly on franchised small businesses—while exceeding the agency’s statutory authority.

What’s Next: If the FTC proceeds with a rulemaking, IFA will actively engage to ensure compliance with the FTC Act and advocate against overly broad or burdensome requirements that could harm franchised small businesses and their customers.

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AFA Momentum Continues During Recess

What Happened: While Congress has been in recess the past two weeks, the American Franchise Act (AFA) reached over 106 cosponsors in the U.S. House. The bill now boasts a durable coalition, including 16 Democrats.

Why It Matters: This surge in support has triggered the first major organized opposition from labor groups, led by AFL-CIO. Meanwhile, IFA allies continue to surge support for the franchising model.  

What’s Next: With a few days left in the congressional recess, IFA is calling on local brands and franchise owners to counter labor’s narrative by telling policymakers directly how the AFA protects your specific local business. Every outreach makes an impact so please contact IFA’s Erica Farage to coordinate and receive updated briefing materials.

California Seeks to Adopt OSHA’s Expansive Walkaround Rule

The California Division of Occupational Safety and Health (Cal/OSHA) issued a proposed worker walkaround regulation to allow third parties – including union representatives, plaintiffs’ attorneys and other unrelated parties – to accompany inspectors during site inspections, creating risk of trade secret and confidential information exposure to these third parties.

Why It Matters: The federal OSHA Walkaround Rule issued by the previous Administration is the subject of a pending legal challenge brought by the IFA Law Center and its fellow trade associations in Texas federal court, seeking to strike down the Rule as unconstitutional.

What’s Next: IFA voiced its opposition to the regulatory overreach in Cal/OSHA’s walkaround rule that invites parties unrelated to a Cal/OSHA inspection onto an employer’s premises to openly engage with its employees about matters unrelated to the scope of the inspection.