The International Franchise Association (IFA) today applauded signature of California Senate Bill 919, bipartisan legislation extending disclosure requirements to third-party franchise sellers such as brokers, broker networks, and franchise sales organizations.

The International Franchise Association (IFA) this week hosted nearly 350 franchisors, franchisees, and suppliers in Washington, D.C., to advocate for policies impacting the franchise business model while hearing from a number of lawmakers and political experts on the state of play in Washington ahead of the 2024 election. IFA also presented its bipartisan Legislator of the Year awards to six franchise champions in Congress.

“The momentous decision in Massachusetts will have a far-reaching impact toward protecting franchisees’ roles as entrepreneurs and business owners,” said Michael Layman, IFA senior vice president of government relations and public affairs. “Classifying franchisees as employees, as the plaintiffs unsuccessfully argued, would have undermined franchisee independence and led to an untenable situation for franchisors and franchisees alike, and undoubtedly created confusion, uncertainty, and an increase in litigation in the Commonwealth. We are pleased that common sense prevailed in the Bay State and hope that its precedent impacts the broader independent contractor debate in Washington, D.C. and state capitals across this country.”

IFA today applauded passage of California Senate Bill 919, bipartisan legislation extending disclosure requirements to third-party franchise sellers such as brokers, broker networks, and franchise sales organizations. The 75-0 Assembly vote follows months of IFA advocacy, with the support of the Coalition of Franchisee Associations (CFA) and American Association of Franchisees & Dealers (AAFD), promoting the legislation to strengthen the foundation on which the franchise relationship begins by improving information available to prospective franchisees. The bill passed the Senate in May and now heads to Gov. Gavin Newsom’s desk for signature.

“We applaud the decision by the Northern District of Texas vacating the FTC’s unlawful noncompete rule,” said Michael Layman, IFA senior vice president of government relations and public affairs. “Using the precedent from the Supreme Court decision overturning the Chevron doctrine, the ruling not only delivered the death knell to the FTC’s attempt to expand its rulemaking authority, but also agreed with the arguments raised by IFA in its amicus brief filed in the case that the rulemaking record, fraught with a lack of empirical data, does not allow for such a sweeping rule. The decision is a win for franchised small businesses and their right to independently operate.”

The International Franchise Association (IFA) today endorsed seven bipartisan candidates ahead of their August primary elections, applauding their leadership on pro-business policies supporting America’s locally owned franchise small businesses. Named a “Friend of Franchising,” IFA endorsed candidates in Michigan, Missouri, Hawaii, and Minnesota.