Bill · H.R. 5267· House(119-HR-5267)

American Franchise Act

Age: 65 years

Oklahoma

Introduced: 9/10/2025
Last activity: 9/8/2026 — Placed on the Union Calendar, Calendar No. 702.
Sponsored by: Kevin Hern
Cosponsors: - 140 - 17

Labor and Employment

Introduced
On Calendar

What this bill would do

This bill is called the American Franchise Act. It aims to protect the traditional franchise business model by clarifying the rules around joint employment. Under the bill, a franchisor can only be considered a joint employer of a franchisee's workers if they have substantial direct and immediate control over essential terms of employment. These essential terms include things like wages, benefits, hours, hiring, firing, and discipline. The bill sets clear definitions for what counts as direct control versus standard brand protection. Finally, the rules apply to future legal proceedings and do not affect ongoing cases started before the enactment date.

Yes· 3 of 4

Would business owners be better off under this?+6
The bill significantly reduces potential liability for franchisors and provides more certainty for franchisees.
Does this make it easier to run a small business?+5
The bill provides clearer guidelines and protects independent franchisees from expansive joint-employer liability.
Is this likely to create jobs?+1
By providing legal clarity for the franchise model, the bill aims to protect and support the stability of a major employment sector.

The opposite· 3 of 4

Would union members be better off under this?-4
The bill makes it more difficult for union organizers to establish joint-employer status with franchisors.
Does this strengthen the rights of workers to organise?-3
The bill narrows the definition of joint employment, which could make it more difficult for unions to organize workers at franchisor levels.
Does this give the federal government more power?-2
The bill limits the scope of federal joint-employer liability, shifting more control back to individual businesses.