Following advocacy efforts from the International Franchise Association (IFA), the Federal Trade Commission (FTC) announced this week that its final “Non-Compete Clause Rule” would preserve noncompete clauses in contracts between franchisors and franchisees. While IFA commends the decision to protect the franchisor-franchisee relationship in the final rule, the organization raised continued concerns with FTC overreach in banning noncompete clauses in employment relationships and the harm it will bring to competition and intellectual property, particularly for franchised small businesses.

“This rule is the latest unnecessary and burdensome regulation from the Biden Administration targeting small businesses,” said Michael Layman, IFA senior vice president of government relations and public affairs. “It comes as many entrepreneurs continue to struggle in today’s unpredictable regulatory climate, grappling with lingering inflation, labor challenges, and high costs of goods. Small business owners, especially franchisees, need certainty to operate, and this Administration has provided them anything but predictability.”

The International Franchise Association (IFA) today endorsed Reps. John Joyce (R-PA-13) and Lloyd Smucker (R-PA-11) ahead of next week’s primary elections in Pennsylvania. Named a “Friend of Franchising,” IFA endorsed the candidates for their leadership on pro-business policies supporting America’s locally owned franchise small businesses.

The International Franchise Association (IFA) today applauded U.S. Senate passage of the bipartisan Congressional Review Act (CRA) resolution, H.J. Res. 98, overturning the National Labor Relations Board’s (NLRB) expanded joint employer standard, which would fundamentally change the relationship between franchisor and franchisee. Following passage, IFA sent a petition with over 5,000 signatures from the franchise community to President Joe Biden urging him to sign the legislation.

The International Franchise Association (IFA) today endorsed legislation introduced in California requiring new registration and disclosure for third-party franchise sellers. Sponsored by California State Sen. Thomas Umberg (D-34), S.B. 919 adds additional transparency to the franchise sales process by amending the California Franchise Investment Law (CFIL) to require third-party franchise sellers to file a sellers disclosure form and provide standardized disclosures to prospective franchisees.

Mary Kennedy Thompson, vice chair of the International Franchise Association (IFA) and Chief Operating Officer of Neighborly, today appeared before Congress to discuss the impact of alternative areas of financing on small businesses, especially franchisors, franchisees, and their employees. Testifying before the U.S. House Small Business Subcommittee on Oversight, Investigations, and Regulations, Thompson discussed her more than three decades in franchising as both a franchisee and franchisor.