Congress urged to pass American Franchise Act to protect franchising model
Updated
Updated · The Wall Street Journal · May 3
Congress urged to pass American Franchise Act to protect franchising model
6 articles · Updated · The Wall Street Journal · May 3
The Wall Street Journal opinion article says the bipartisan bill has support from more than 100 House members and follows new joint-employer guidance from acting Labor Secretary Keith Sonderling.
It argues franchising spans 300 industries, supports nearly 9 million jobs and relies on a stable federal joint-employer standard to shield local operators from policy reversals.
The piece says action is urgent as inflation and gas prices squeeze consumers and economic worries pose political risks, citing McDonald’s as a prominent example of the model’s affordability and reach.
Will codifying the joint employer standard truly protect small franchisees or primarily benefit large parent corporations?
As federal rules ease employer liability, how will state non-compete bans shift the power balance in franchising?
How will AI management tools challenge the new legal standard of 'direct employer control' in franchising?