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February 26, 2025

U.S. House Advances Tax Effort

On Tuesday, the U.S. House of Representatives passed a Fiscal Year 2025 budget resolution by the slim vote margin of 217-215.

Why it matters: The vote is a victory for franchise small business owners, as it sets the table for Congress to advance legislation to pass IFA-supported priorities like extending the Section 199A deduction, restoring bonus depreciation and extending interest deductibility.

What’s next: Attention turns to the U.S. Senate, where we anticipate the upper chamber will agree to a one bill reconciliation structure. However, there are still significant differences to be bridged.

IFA Releases 2025 Franchisor Survey

This week, IFA released its 2025 Franchisor Survey, the fourth annual survey of franchise brands highlighting economic challenges and current trends facing franchised businesses. 

Dig deeper: This year’s survey shows that while inflation concerns are easing, labor issues and sales remain a top challenge for franchisors: 37% of respondents cited labor availability, quality, and cost as their biggest concern, and 15% highlighted poor sales. The survey also explored questions about growth and franchisor-franchisee relationships, as part of IFA’s commitment to Responsible Franchising.

Big picture: The Franchisor Survey offers an illuminating look into the priorities and concerns for the year ahead, which is shaping up to be a time of incredible opportunity and growth. 

Labor Nominee Supports Franchising

Last week, the U.S. Senate Committee on Health, Education, Labor and Pensions (HELP) convened its hearing to consider former U.S. Representative Lori Chavez-DeRemer (R-OR) nomination for Labor Secretary. 

Dig deeper: Chavez-DeRemer showcased her commitment to not only the Trump Administration’s growth agenda, but also the franchise model, stating, “the franchise business model is important to the American workforce.”

Our thought bubble: When the future of Main Street franchises was on the line, Chavez-DeRemer stood with America’s 830,000 franchised small businesses and voted to repeal the Biden expanded joint employer rule

CTA Requirements Back On

The roller coaster saga of the IFA-opposed Corporate Transparency Act (CTA) continues, as on February 18 a court lifted the last remaining nationwide injunction preventing the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) from enforcing the CTA.

What this means: This latest court decision means nearly all franchisees must now file an annual Beneficial Ownership Information (BOI) report with FinCEN is March 21, 2025.

Our thought bubble: IFA will continue opposing the unconstitutional CTA. If you have additional questions, you can contact IFA General Counsel Sarah Davies.

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IFA Testifies on Maryland Franchising Bill

On February 19, IFA testified during the Maryland House Economic Matters Committee hearing to support HB 992, a bill that would streamline Maryland franchising registration and renewals. 

The big picture: IFA supports streamlining and expediting renewals for franchises in the state and is working with the bill’s sponsor and the office of the Attorney General to reflect those priorities. The bill is expected to be voted out of the Economic Matters Committee and clear the House prior to the legislative crossover deadline of March 17.

Utah House Passes Franchise Bill

HB 441, sponsored by Rep. Ken Ivory (R-039), passed the House on February 21, and was introduced in the state Senate.

Why it matters: As drafted, the legislation is overly broad and would disrupt the franchisor-franchisee relationship by requiring operational hours amendments to franchise agreements.

What’s next: The bill is likely to receive its first hearing in the Senate as early as this week.  

New Mexico Franchise Bill Introduced

SB 439 was introduced in New Mexico by Sen. Joshua Sanchez (R-29), which has since been referred to the Senate Tax, Business and Transportation Committee. However, no hearing has been scheduled yet.

Why it matters: IFA opposes the "Deceptive Franchise Practices Act" because it is overly restrictive and could disrupt the flexibility and operations of franchisors.

What’s next: IFA will continue to monitor and oppose the bill’s progress.

Vermont Franchise Bill Advances

H. 205, sponsored by Rep. Michael Marcotte (R-068), has been referred to the House Committee on Commerce and Economic Development in Vermont, but no hearing has been scheduled. 

Zoom in: IFA opposes the bill because it bans noncompete agreements for franchisees and employees, making them void and requiring notice about their unenforceability. The Senate has its own non-compete legislation expected to be added to the House language. 

What's next: IFA continues to monitor the progress of the bill and is working with the Vermont Chamber of Commerce in opposition.