HR 5267: American Franchise Act

Cosponsors

Donald Davis (D) NC, Beth Van Duyne (R) TX, Hillary Scholten (D) MI, Chuck Edwards (R) NC, Jim Costa (D) CA, Mark Alford (R) MO, Adam Gray (D) CA, August Pfluger (R) TX, Henry Cuellar (D) TX, Nathaniel Moran (R) TX, Ami Bera (D) CA, Vicente Gonzalez (D) TX, Ryan Mackenzie (R) PA

Summary

This bill does not yet have a summary.

Policy Areas

Labor and Employment

Next Steps

The next step is for the House Committee on Education and Workforce to consider the bill. This may involve hearings, markups, and revisions before the bill proceeds to the full House for a vote. If it passes the House, it moves to the Senate for consideration.

Social Impact

The act's impact on workers is debated. Supporters believe it protects the franchise model and maintains jobs. Opponents worry that reduced franchisor liability could lead to worker exploitation, with diminished wages, benefits, and working conditions. The potential impact on social equality and worker welfare is uncertain.

Business Impact

If passed, the American Franchise Act would provide clarity on joint employer liability for franchisors, potentially reducing legal and financial risks for franchise businesses. This could encourage franchise expansion and investment, boosting economic activity. Conversely, some argue that reducing franchisor liability could potentially harm worker protections and lead to decreased employee wages or benefits.

Financial Impact

The bill's financial impact is uncertain. Reduced legal costs for franchisors could lead to increased franchise business activity and economic output, positively affecting financial markets. However, the potential impact on worker compensation could lead to decreased worker earnings and increased social costs.

Bill History

Wednesday, September 10, 2025
IntroReferral - Referred to the House Committee on Education and Workforce.

Wednesday, September 10, 2025
IntroReferral - Introduced in House

Bill Text

Introduced in House September 10, 2025
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Sponsors