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November 12, 2025

Federal Government Poised to Re-Open

After passage of a funding agreement in the U.S. Senate and a key committee vote in the U.S. House, the federal government could begin reopening as early as this week, after a 42-day shutdown. The measure is pending passage by the full House and the signature of President Trump, who has signaled his support.

Why It Matters: IFA has called for an end to the shutdown since day one, joining coalition letters and reinforcing the harm the shutdown has caused for small businesses and consumers. IFA praised the bipartisan agreement to reopen the government reached by the U.S. Senate and urges House passage to quickly follow.

Zoom Out: From Small Business Administration (SBA) loans to delays or suspensions of federal inspections, permits, and regulatory approvals, the franchising community has been hurt by the government shutdown. Once the government reopens, IFA calls on lawmakers to “get back to business” and focus on legislative priorities like the American Franchise Act.

Momentum Grows for the American Franchise Act

Despite the government shutdown, momentum has continued to grow for the American Franchise Act. 

Why It Matters: The landmark bill, which was introduced on September 10, is now up to 39 bipartisan cosponsors. It would lock in a clear, franchising-specific joint-employer standard to end years of regulatory whiplash that has raised costs and legal risk for brands and local owners.

What’s Next: IFA and our partners in the business community continue our push for additional cosponsors in the U.S. House and for introduction of companion legislation in the U.S. Senate. You can join the effort here or contact your Member of Congress here.

IFA Responds to FTC Non-Compete RFI

On October 17, IFA submitted comments to the Federal Trade Commission (FTC) in response to its most recent Request for Information (RFI) on non-compete clauses.

Why It Matters: IFA urges the FTC to avoid extending the noncompete ban to franchise agreements to ensure small business owners can operate independently while maintaining fair and competitive labor practices. The comments are consistent with IFA’s position that a noncompete ban exceeds FTC rulemaking authority.

Go Deeper: Read IFA’s entire RFI response here.

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IFA Tackles Labor Shortage

IFA is joining the Critical Labor Coalition (CLC) to address ongoing staffing and recruitment challenges facing franchise owners.

The Big Picture: Labor shortages continue to squeeze franchise businesses, forcing reduced hours and driving up wage costs. By joining the CLC — alongside partners like the National Restaurant Association and the American Hotel & Lodging Association — IFA is amplifying a united voice for policy change.

Zoom Out: The coalition is pursuing legislative solutions to expand hiring incentives, modernize immigration policy, and help franchise owners fill critical workforce gaps.

IFA Combats EU Overreach in Franchising

IFA continues to push back against the European Union (EU) Corporate Sustainability Due Diligence Directive (CSDDD) to prevent unnecessary regulatory burdens on American franchisors. The directive could force U.S. brands operating in Europe to meet costly supply chain compliance requirements—even when they have little control over day-to-day operations abroad. 

The Latest: On October 22, the European Parliament rejected a compromise agreement on the CSDDD, sending the proposal back for further debate. Lawmakers will now vote again tomorrow, November 13, to determine their next negotiating position with EU member states, which already adopted their stance in June.

Why It Matters: IFA Chief Advocacy Officer Michael Layman highlights the impact of the measure on franchising, especially for “franchisors in hospitality, retail and food services who would easily meet the EU’s threshold for CSDDD obligations.” IFA and coalition partners are urging Congress to act to prevent EU regulatory overreach that threatens American businesses and workers.