What does Preamble of American Franchise Act do?

This bill is formally titled 'To preserve the franchise business model'.

What does SHORT TITLE. of American Franchise Act do?

This bill is formally titled the American Franchise Act.

What does FINDINGS. of American Franchise Act do?

This section outlines findings related to the franchising business model. A franchise is defined as a commercial relationship where a franchisee operates an independent business using a franchisor's system and trademarks. Franchisors establish standards to maintain consistency and quality, which benefits consumers, brand value, and franchise profitability. Franchisees are independent business owners who control day-to-day operations and labor relations. The franchise business model has a significant economic impact, generating approximately $825 billion in economic output and employing roughly 8.4 million workers in 2022. Inconsistent definitions of 'joint employer' have negatively impacted franchising by creating potential liability.

What does CLARIFICATION OF JOINT EMPLOYMENT FOR FRANCHISING. of American Franchise Act do?

This section amends the National Labor Relations Act and the Fair Labor Standards Act to clarify the definition of joint employment in the context of franchising. It defines 'direct and immediate control' with respect to essential terms and conditions of employment, such as wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction. A franchisor may be considered a joint employer of a franchisee's employees only if it possesses and exercises 'substantial direct and immediate control' over one or more of these essential terms and conditions. The definitions of 'franchise,' 'franchisee,' and 'franchisor' are established, referencing regulations and the Petroleum Marketing Practices Act. The Fair Labor Standards Act adopts the joint employer criteria from the National Labor Relations Act, but applies the Act's definitions of 'employee' and 'employer'.

What does APPLICABILITY. of American Franchise Act do?

This Act does not apply to proceedings that began before its enactment.

Back to bills

American Franchise Act

Last updated: 3/19/2026 · Introduced: 12/17/2025

Author: Roger Marshall (R-KS)

TL;DR (AI)

The bill clarifies the legal definition of 'joint employer' in franchising to require 'substantial direct and immediate control' by a franchisor over a franchisee's employees.
It establishes definitions for 'franchise,' 'franchisee,' and 'franchisor' within the National Labor Relations Act and the Fair Labor Standards Act.
The bill excludes from its application any legal proceedings initiated prior to its enactment.

119th Congressin committeeHR. 5267(In Committee)Official page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title., and 3 more.

5 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account