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June 25, 2025

Franchisees! Take IFA's Landmark Survey

This week, IFA released its “Value of Franchising” survey – and we need to hear from all franchisees. This report will update the 2021 Value of Franchising study.

Zoom out: Conducted in partnership with Oxford Economics, this report helps guide IFA advocacy efforts, as we use the results to show policymakers why our model must be defended and promoted. If you’re a franchisee, please take 10 minutes to share more about your business. Franchisors and suppliers, please share with your systems, clients, and networks.

Zoom out: The survey will help turbocharge IFA advocacy on your behalf in the years to come – and spread the good news about the work you do for all those you serve.

Senate to Vote on Tax Bill

This week, the U.S. Senate plans to consider its version of the budget reconciliation package known as the “One Big, Beautiful Bill”, ideally in a form that the U.S. House of Representatives can pass without further changes to meet President Trump’s July 4th deadline.

Dig Deeper: IFA released new data showing the clear-cut wins for franchise small businesses included in the legislation. Conducted in partnership with FRANdata, the analysis focused on the provisions of specific interest to franchising:

1. The legislation permanently extends 20% pass through deduction for qualified business income. An estimated 73% of franchisors and 98% of franchisees are pass-through entities.
2. With the permanent extension of bonus depreciation, franchising is estimated to expense an additional $16 billion in year one.
3. By adjusting the business interest deduction to use EBITDA instead of EBIT, franchising will be able to deduct an additional $5.8 billion of interest.
4. By implementing no tax on tips, franchise employees are estimated to save a total of $6 billion in federal taxes.
5. Should taxes on overtime be eliminated, franchise employees are estimated to save a total of $311 million annually.

IFA continues to express support and urge swift passage while advocating for other important provisions beneficial to IFA members.

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IFA Fights Harmful New Jersey Proposal

IFA testified on June 23 against the New Jersey Department of Labor and Workforce Development’s proposed rule to expand the “ABC” test, which dictates whether a worker is an employee or an independent contractor under key state labor laws.  

Dig deeper: The Department seeks to accomplish through rulemaking changes to the ABC test it was unable to achieve through legislation in 2019. IFA asks that if the Department still makes a rule, it should at least exclude franchised businesses or interpret the ABC test consistent with other states.  

Zoom out: Previous efforts to pass an ABC test in New Jersey failed in the face of IFA opposition. We will continue opposing this year’s version and monitor for notable developments.

IFA 2025 Advocacy Summit: Help Shape the Future of Franchising

IFA’s Advocacy Summit puts you in the room with the decision-makers who shape the policies that impact your business. This September, join top franchise leaders for a coordinated, strategic effort to advocate for franchising on Capitol Hill. This is your opportunity to influence the future of your business. Register today to make your voice heard.