The International Franchise Association (IFA) today released the following statement on California Gov. Gavin Newsom signing AB 1228 into law, after it was passed by the State Legislature on Sept. 14. The legislative agreement will protect California restaurants from the harms of AB 257 (the FAST Act), joint liability on quick-service restaurants imposed by the original version of AB 1228, and regulatory overreach by the Industrial Welfare Commission.

Featured inside discussions on the state of play in Washington and policies impacting franchising with Members of Congress, regulatory experts, political insiders, and franchise leaders; Advocates met with over 250 lawmakers

The International Franchise Association (IFA) today released the following statement on passage of AB 1228 by the California State Legislature, after it was amended following the announcement of a legislative agreement brokered by Governor Gavin Newsom, the Save Local Restaurants coalition and the Service Employees Union International (SEIU). The agreement will protect California restaurants from the harms of AB 257 (FAST Act), joint liability on quick-service restaurants imposed by the original version of AB 1228, and regulatory overreach by the Industrial Welfare Commission.

The Save Local Restaurants coalition today announced that a comprehensive legislative agreement has been reached regarding quick service restaurants and outstanding legislative and regulatory issues in California. The language of the agreement has been inserted in Assembly Bill 1228 (Holden) and this version of the bill must pass both houses of the state legislature by Thursday, September 14. The components of the agreement can be found here. 

Testifying before the U.S. House Small Business Subcommittee on Economic Growth, Tax, and Capital Access, Jimmy John’s Franchisee James Chung shared the impact of franchising on local economies and communities and the ways Congress can reduce regulatory burdens to support small business growth.

The International Franchise Association (IFA) today released new research from Oxford Economics showing franchisees’ concerns with the National Labor Relations Board’s (NLRB) forthcoming joint employer standard. The survey shows that the rule is expected to increase uncertainty among franchisees, increase costs for franchisees, their franchisors and consumers, and decrease access to business ownership through franchising, which provides a pathway to ownership for women and people of color at disproportionately greater rates.

The International Franchise Association (IFA) today released the following statement on the U.S. Department of Labor (DOL’s) notice of proposed rulemaking on overtime pay.

Testifying before the U.S. Senate Special Committee on Aging during a field hearing in Indianapolis, multi-unit, multi-brand franchisee Wesley Snyder, highlighted the unique opportunities created through franchising, as well as continued workforce challenges. Snyder, a franchisee of FASTSIGNS International, PIRTEK USA, and My Salon Suite, emphasized that Congress and regulatory agencies should avoid policies that could harm the business model and take away the independence of franchise owners.

The International Franchise Association (IFA) today applauded a group of bipartisan members of the U.S. House of Representatives, who sent a letter to the Federal Trade Commission (FTC) with concerns about the agency’s recent activity threatening the franchise model. Citing the Commission’s March 10 Request for Information (RFI), the congressmen caution that this recent activity does not align with the “statutory jurisdiction or mission of the agency” and that there is no “legitimate basis for the commission’s inquiry.”

Speaking at the Federal Trade Commission’s (FTC) July 20 Open Hearing, Planet Fitness franchisee and IFA Board Chair David Humphrey and IFA General Counsel Sarah Bush urged support for the franchise business model as the Commission considers regulatory changes following its March 10 Request for Information.