American Franchise Act

Key Points

• This bill says a big franchise brand (like a national fast-food chain) is usually not the employer of workers at locally owned franchise stores.
• The brand would count as a worker’s employer only if it actually makes key job decisions like pay, benefits, schedules, hiring, firing, or discipline.
• It says brand rules like store hours, product quality, training materials, and minimum staffing for service standards should not, by themselves, make the brand an employer.
• For workers, it could make it harder to bring wage, overtime, or labor complaints against the national brand, pushing most cases toward the local franchise owner.
• Supporters say it protects small franchise owners and keeps franchising stable; critics may say it reduces accountability for big brands that influence work conditions.