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May 14, 2025

Tax Bill Passes Out of Committee

This morning, the U.S. House Ways and Means Committee approved its long-awaited tax legislation. IFA announced support for the draft bill over the weekend, which includes several provisions critical to preventing a tax hike on America’s 831,000 franchise small businesses.

Go deeper: Some of the encouraging tax bill details include:

• 199A deduction increased to 23% from 20% and made permanent – top IFA tax priority.
• 5-year extension of EBITDA/interest deductibility.
• 5-year extension for 100% bonus depreciation. No phase out.
• Permanently doubles the estate tax exemption. Raised to $15 million and indexed for inflation.
• No tax on tips and overtime for four years. Deduction is unlimited but not available to highly compensated employees (≈$160,000 threshold). Restaurants and beauty industry included.
• No changes to carried interest tax rates.

The big picture: This bill, which follows a coalition letter led by IFA President and CEO Matt Haller urging Congress to prevent looming tax hikes on small and family-owned businesses, is great news for franchisors and franchisees on many fronts. Learn what’s in the bill, what’s next in the legislative process, and why IFA is supporting it as it advances—all in our May 20 member briefing.

Congressional Hearing on Franchising Tomorrow

Tomorrow, May 15, multiple IFA members will testify before the U.S. House Committee on Small Business during a hearing entitled, “A Small Part in A Big Company: Examining the Power of Franchising in the American Economy.”

The following franchise witnesses will tout the power of the franchising community:

• Randy Cross, IFA Board member and Michigan-based Fish Window Cleaning franchise owner/President of Fish Window Cleaning based in Missouri
• Craig Wright, CEO of Aqua-Tots Swim School based in Mesa, AZ
• Jennifer Beaudoin, a Virginia-based Buffalo Wild Wings franchisee 

Zoom in: Expect all the speakers to discuss how franchise businesses fuel the Main Street economy and policies needed for their growth. Watch the hearing at this link on Thursday, May 15 at 10:00 AM ET.

Labor Secretary Tour Visits McDonald's

On May 12, Joe Erlinger, President of McDonald’s USA, alongside U.S. Labor Secretary Lori Chavez-DeRemer announced plans to hire 375,000 new restaurant employees this summer during an event at a McDonald’s franchise in Columbus, Ohio.

The big picture: The event also marked the 10th anniversary of McDonald’s “Archways to Opportunity,” a program designed to support restaurant employees in achieving their educational and career goals.

Our thought bubble: This announcement shows the power of franchising to generate opportunity and create meaningful jobs. IFA is always proud to share our members’ accomplishments. If you have news or announcements you’d like to share, please email press@franchise.org.

U.S.-China Reach Trade Deal

The United States and China agreed Monday to drastically roll back tariffs on each other’s goods for an initial 90-day period, a major breakthrough that has buoyed global markets.

Why it matters: The deal aims to improve market access for U.S. exports and addresses long-standing trade imbalances that have affected American industries. 

Our thought bubble: By strengthening supply chains and ensuring fairer trade practices, the agreement provides a more favorable environment for American franchise businesses.

IFA Joins Small Business Roundtable

On May 7, IFA’s Haider Murtaza participated in a Small Business Stakeholder Roundtable with House Majority Whip Tom Emmer (R-MN) and House Small Business Committee Chairman Roger Williams (R-TX). They were joined by House Small Business Committee Members Mark Alford (R-MO), Troy Downing (R-MT), Brian Jack (R-GA), Nick LaLota (R-NY), Dan Meuser (R-PA), Derek Schmidt (R-KS), and Pete Stauber (R-MN). 

Why it matters: Held during National Small Business Week, Haider shared the contributions of franchising and called on Congress to advance pro-growth policies like tax extensions this year. 

Dive deeper: IFA emphasized the importance of franchise-driven job creation and economic investment.

IFA Sinks Oklahoma Bill

In a major win for franchising, Oklahoma Senate Bill 521 failed to pass the House before a key deadline, effectively killing the legislation for this session.

What happened: Following strong advocacy from IFA, the bill sponsor, Representative Mike Dobrinski, agreed to forgo these controversial amendments that could have significantly altered the relationship between franchisors and franchisees.

What's next: While it could come back in future legislative sessions, the franchising community has avoided a significant challenge this year.

Illinois Franchisees Advocate in Springfield

A coalition of prominent Illinois franchisees descended on the state capital last week to advocate for the franchise business model with key legislators.

Details: Sam Patel and Kajal Patel, siblings who operate Dunkin' Donuts, Baskin-Robbins, and Buffalo Wild Wings GO locations, joined Michael Procaccio and Marc Largent, both multi-unit Jimmy John's owners, along with Michael Aguilar, state and local government relations manager of Inspire Brands, met with influential lawmakers and staff, including:

1. Representative Tony McCombie, House Minority Leader (pictured above)
2. Senator Seth Lewis
3. Senator Dale Fowler, Senate Assistant Minority Leader (pictured above), and
4. Staff representing House Speaker Pro Temp Kam Buckner

Why it matters: Franchising is a significant economic engine in Illinois, supporting over 29,000 establishments and 307,000 jobs, contributing $35.4 billion to the state's economy. The advocacy underscores the sector's importance as lawmakers consider policies impacting small businesses during the legislative session. 

(L to R) Sam Patel, Michael Procaccio, Kajal Patel, Senate Assistant Minority Leader Dale Fowler, Marc Largent, Michael Aguilar

(L to R) Michael Aguilar, Kajal Patel, Michael Procaccio, House Minority Leader Tony McCombie, Sam Patel, Marc Largent

Franchising Takes Over Miami Beach

Last weekend, hundreds of franchise brands, and thousands of opportunity seekers, and the top leaders in franchising gathered at the Miami Beach Convention Center for the first-ever IFA World Franchise Show.

One fun thing: Debbie Blas, representing the office of Miami Mayor Francis Suarez, joined IFA President and CEO Matt Haller to kick off the event emphasizing the mayor’s support for franchising and that Miami is “open for business.”

Our thought bubble: After this year’s smash hit, we can’t wait to see you at the next World Franchise Show taking place in Ft. Lauderdale in Sept. 2026.

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