INFINITI HR℠, The Professional Employer Organization for Franchises®, Stands with the International Franchise Association (IFA) In Support of the Bipartisan American Franchise Act at the 2025 IFA Advocacy Summit

Leading franchisors, franchisees, and suppliers were invited to join INFINITI HR℠, The Professional Employer Organization for Franchises®, in Washington, D.C. to shape the future of franchising. 

WASHINGTON, D.C. Franchising is local, and it must be protected nationally. INFINITI HR℠, The Professional Employer Organization for Franchises®, is proud to stand with the world’s leading franchisors, franchisees, and suppliers in support of the bipartisan American Franchise Act. As one of the most important pieces of legislation in the history of franchising, the bipartisan American Franchise Act 2025 will protect and strengthen franchising across the country, safeguarding opportunities for small business owners and the communities they serve.  

“Franchising is a business growth strategy that has enabled the creation of more than 831,000 small businesses across the United States, generating approximately $896 billion in annual economic output, employing approximately 8.8 million workers, spanning approximately 300 industries,” said Daniel Mormino, INFINITI HR℠ Chief Business Officer. “The Professional Employer Organization for Franchises® must protect and honor all franchisees as independent small business owners at the heart of the U.S. economy.” 

Engaging with Lawmakers 

The franchise business model is rooted in a simple but fundamental value proposition — it enables aspiring small business owners to go into business for themselves, but not by themselves. This community includes legacy brands we know and love – and others that are just getting started. The model is founded on a relationship between a franchisor (or brand) and a franchisee (or individual business owner). It is vital to the consistency of products and services offered to consumers, the success of the system, and the value of the brand. Essentially, a franchise is a local business that licenses the branding and operational processes of the franchisor but is responsible for the day-to-day operations of its independently owned business. The local owner, or franchisee, is responsible for hiring staff, organizing schedules, managing labor costs inclusive of payroll, HR, benefits, and performing all daily operational tasks, as well as local sales and marketing. But that relationship and the opportunity it represents are under threat. 

A Commitment to Advocacy 

The bipartisan, bicameral American Franchise Act 2025 modestly amends the Fair Labor Standards Act (FLSA) and the National Labor Relations Act (NLRA) to clarify that: “A franchisor may be considered a joint employer of the employees of a franchisee only if the franchisor possesses and exercises substantial direct and immediate control over one or more essential terms or conditions of the employees of the franchisee.” This is consistent with historical precedent and current NLRB policy. 

The American Franchise Act 2025 applies only to franchisors and franchisees alleged to be joint employers under the FLSA and NLRA. Non-franchise independent contractor relationships and other tests of multi-party liability – e.g., misclassification, single employer, agency – are not covered by the legislation. 

Franchisors are not immune from a joint employer finding under the legislation. Actions such as setting minimum standards for brand protection – including to protect the franchisor’s trademarks and IP – and offering training materials or other operations resources do not amount to direct and immediate control. 

“For the first time ever, Congress has the chance to advance the bipartisan, bicameral American Franchise Act 2025, a landmark measure that would finally end years of uncertainty caused by shifting joint employer standards,” Mormino said. “INFINITI HR℠, The Professional Employer Organization for Franchises®, is proud to stand with the International Franchise Association (IFA) and our Coalition Partners in support of clear, common-sense legislation that affirms a fundamental truth: franchisees are independent small business owners. We are honored to support the PEOple who took a chance on themselves, their employees, and their communities.”

To learn more, please visit: franchise.org/advocacy-summit and savelocalbusinesses.com.

ABOUT INFINITI HR℠ 

INFINITI HR℠ is the home for PEO industry top talent and proud to be recognized as The Professional Employer Organization for Franchises®. Ranked ‘Best PEO for Franchises,’ INFINITI HR℠  is a customizable PEO by entrepreneurs for entrepreneurs. Franchisors and Franchisees allocate their total labor burden to INFINITI HR℠ for one holistic service, providing units of all sizes the competitive advantage of a large enterprise, with access to state-specific HR, True-Group Fortune 500® Level Benefits, Workers’ Compensation Insurance, EPLI, Cyber Liability Insurance, Joint-Employer Liability Insurance, and Recruitment Process Outsourcing (RPO) designed to attract and retain top talent, while providing predictability and stability to labor cost in changing times.