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September 24, 2025

Momentum Grows for American Franchise Act

Following last week’s IFA Advocacy Summit, momentum continues to grow for the American Franchise Act (AFA), the first-of-its-kind bipartisan legislation recognizing that franchisees are small businesses, and their independence must be protected by federal law. 

The latest: After meeting with hundreds of Members of Congress and their staff, bipartisan cosponsors for the legislation continue to increase. Check out the latest action from the IFA-led Coalition to Save Local Businesses and reach out here if you’d like to get involved with the Coalition to push for passage of the legislation.



What they are saying: Coalition partners, including IFA, the National Restaurant Association, National Taxpayers Union, and the American Hotel and Lodging Association, also voiced strong support. Click here for all the highlights and next steps.

What else: In the Arizona Daily Star, Nicholas Tellez, former Democratic Party Chair of Graham County, AZ, writes that the American Franchise Act “would protect the independence of franchisees, maintain franchising as a door for aspiring small business owners, and strengthen workers’ rights.” Read more coverage of the event and the bill in the Franchise Times and Entrepreneur.

No Tax On Tips Occupations Defined

On September 19, the U.S. Department of the Treasury and the Internal Revenue Service provided guidance on the “No Tax On Tips” provision in this summer’s “One, Big, Beautiful Bill.”

Dig deeper: The proposed regulations list nearly 70 separate occupations of tipped workers, from bartenders to water taxi operators, who may be eligible for a deduction.

Why it matters: Included in the list are many franchise industries poised to benefit from this new law, which IFA was an early and vocal supporter of throughout the legislative process.

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Olympia Coalition Opposes Harmful Measure

Olympia Together, a new IFA-supported coalition in Olympia, Washington, is taking the lead in opposing Proposition 1, a local ballot initiative known as the "Workers' Bill of Rights" that would harm the city's business landscape.

Why it matters: The measure classifies franchisees as "large employers," regardless of their actual size. This impacts small, locally owned businesses that operate as franchises, subjecting them to regulations and costs meant for much larger corporations.

The big picture: The coalition is now actively seeking support, testimonials, and other ways of engagement from local franchise business owners to highlight the potential fallout. If you are a franchised business owner in Olympia, learn more and get involved here. Voters will vote on Prop 1 in November.