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March 12, 2025

Virginia Non-Compete Ban Poised to Advance

Franchisee Testifies Before Senate Committee

What’s Happening: Yesterday, Camp Bow Wow franchisee Josh Rodgers testified before the U.S. Senate Committee on Small Business & Entrepreneurship in a hearing on the pet economy, “Main Street’s Top Dog: Growing the Small Business Pet Economy.”

Why It Matters: Rodgers, who along with his wife Ashley, own 7 Camp Bow Wow locations with plans for future expansion, testified on behalf of IFA on the importance of the franchise model to the growing pet care industry, and why Congress must support the franchise model to protect this critical sector.

Zoom In: His testimony highlighted how recent tax relief has supported small business growth, and he urged Congress to pass the American Franchise Act to provide certainty for franchise owners.

Member Advocacy in Action

What Happened: Luke Andrus, an Anytime Fitness franchise owner from Louisiana, also traveled to Washington, D.C., last week to meet with his elected officials and advocate for the American Franchise Act.

Why It Matters: Direct engagement from franchise owners helps lawmakers understand the real-world impact and why now is the time to prioritize this legislation. Hear what Luke had to say.

 Get Involved: Grassroots advocacy plays a critical role in building bipartisan support for the American Franchise Act. Members interested in participating in advocacy efforts can contact Erica Farage.

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New York Eases Renewals

What Happened: After working with IFA, the New York Attorney General’s office created a new “Early Review” option to help franchisors renew registrations faster. The deadline to take action is approaching on Monday, March 16.

Why It Matters: The process allows regulators to review most renewal materials before audited financial statements are finalized, helping prevent delays that could interrupt franchise sales. Learn more from a recent member briefing.

How It Works:

• Initial filing must occur within 75 days after the fiscal year ends.
• Complete application — including audited financial statements — must be submitted within 120 days.

The Benefit: Early review allows regulators to flag disclosure issues sooner, reducing the risk of costly renewal delays.

IFA Files Joint Employer Brief

What Happened: IFA and coalition partners filed an amicus brief in litigation led by the SEIU challenging the Biden administration’s 2023 joint employer rule.

Why It Matters: The rule expands when two businesses may be considered joint employers under the National Labor Relations Act.

Zoom In:

• The National Labor Relations Board finalized the rule in 2023.
• Business groups challenged the policy in federal court.
• A federal judge later vacated the rule, returning the standard to the 2020 framework.
• The SEIU continues to push for a return to the 2020 rule, leaving franchises hanging in the balance.

The Big Picture: The joint employer standard has changed four times over the past decade, and the legal uncertainty highlights the need for Congress to pass the American Franchise Act to establish a clear joint employer standard for franchising.

Senate Passes Data Privacy Bill

What Happened: The Senate passed its version of the Children’s Online Privacy Protection Act 2.0 (COPPA 2.0) on March 5, advancing legislation that could significantly reshape federal data privacy rules.

Why It Matters: The bill removes long-standing federal preemption, potentially forcing franchised small businesses to navigate a patchwork of state privacy laws.

Zoom In:

• IFA has been engaged in privacy negotiations through the Main Street Privacy Coalition (MSPC).
• MSPC supported a House proposal maintaining a national privacy standard.
• The Senate bill instead adopts a broad constructive knowledge standard, expanding potential liability for businesses.

The Bottom Line: MSPC sent a letter to House leadership opposing the Senate version and will continue advocating for a balanced approach that protects children’s privacy without imposing unnecessary burdens on small businesses.

Washington CEMA Reform Passes

What Happened: Washington’s HB 2274 passed the state Senate 43–5, clearing the legislature ahead of the March 6 deadline. The bill now heads to the governor.

Why It Matters: The legislation addresses a surge in CEMA subject-line litigation that has targeted businesses in recent years.

Zoom In:

• Reduces statutory damages from $500 to $100 per violation
• Adds a knowledge standard to clarify liability
• Maintains core consumer protections

What’s Next: Stakeholders are expected to pursue broader reforms during interim discussions ahead of the 2027 legislative session.