With the 119th Congress underway and the Trump administration getting ready to take workplace, the Worldwide Franchise Affiliation (IFA) has outlined its 2025 Roadmap for Small Enterprise Progress. The suggestions, designed to bolster franchise companies and drive small enterprise progress, deal with 5 key areas that would form the way forward for franchising. Here is what franchise homeowners ought to look ahead to.
Associated: Contemplating franchise possession? Get began now to seek out your personalised listing of franchises that match your way of life, pursuits and funds.
Joint employer requirements
Considered one of IFA’s prime priorities is codifying a joint employer normal. The aim is to make sure franchisees keep autonomy whereas nonetheless benefiting from franchisor help and model consistency and would carry much-needed readability to a long-debated concern. A transparent joint employer normal would defend staff of franchisees from being unfairly labeled as staff of the franchisor whereas permitting franchisors to implement model requirements with out taking over further legal responsibility.
The IFA waged a authorized battle with the Federal Commerce Fee in 2023 and 2024 in opposition to the proposed expanded rule. The IFA-led coalition in the end defeated the industry-changing rule in federal courtroom final July.
Associated: The One Issue the Prime Franchises of 2025 Have in Widespread
Tax insurance policies that promote progress
The group is advocating for a number of key adjustments to tax coverage to create a extra favorable atmosphere for franchise progress. Considered one of its main targets is to make the Part 199A deduction everlasting, because it gives vital tax aid to small companies by decreasing taxable earnings, thereby encouraging reinvestment and enlargement.
Moreover, the IFA seeks enhancements to the Work Alternative Tax Credit score (WOTC), which incentivizes hiring people from teams going through employment obstacles and helps franchise homeowners construct a extra various workforce.
One other precedence for the IFA is the repeal of the property tax, sometimes called the “dying tax.” Its elimination would ease the monetary burden on franchise homeowners trying to go their companies all the way down to the subsequent era. Lastly, the IFA is asking for an extension of the veteran tax credit score, which rewards employers who rent veterans — a step that not solely helps veteran employment but additionally strengthens franchise groups.
Associated: Franchise Possession Made Straightforward: Greatest Practices for Managing and Rising Your Enterprise
Higher transparency
One of many IFA marketing campaign’s focuses is modernizing the FTC’s Franchise Rule, which requires franchisors to reveal key particulars to potential franchisees and strengthens pre-sale disclosure necessities. For the IFA, enhancing transparency is about extra than simply compliance — it is about creating an atmosphere the place franchisees could make well-informed selections with a transparent understanding of the dangers and rewards. This, in flip, helps stop misunderstandings and disputes, resulting in stronger, extra sustainable franchise relationships.
By advocating for clearer disclosure, the IFA goals to scale back friction within the franchising course of and foster long-term success for all events concerned.
Associated: Shopping for a Franchise? Do not Be Intimidated — Observe This Information to Sizing Up a Franchisor.
Preventing regulatory burdens
Extreme rules and costs can place vital monetary and operational pressure on franchise homeowners, making it tougher to compete and thrive. To deal with these challenges, the IFA is advocating for streamlined rules and fairer charge buildings, guaranteeing small enterprise homeowners can deal with progress and sustainability. Its roadmap consists of the next initiatives, every tailor-made to help franchisees:
Enhance entry to SBA loans: SBA loans are a lifeline for a lot of franchisees, providing reasonably priced financing choices to begin or broaden their companies.
Scale back bank card transaction charges: Many franchise companies rely closely on card funds, and excessive transaction charges can erode already skinny revenue margins.
Assist a balanced nationwide privateness regulation: At the moment, a patchwork of state privateness legal guidelines creates compliance challenges and will increase prices for franchisees working in a number of states.
Problem the Company Transparency Act (CTA): The CTA imposes new reporting necessities on small companies, including administrative burdens.
Associated: 8 Daring New Franchise Ideas You will Wish to Know About
Blocking dangerous state-level insurance policies
State-level insurance policies typically add complexity for multi-unit franchise operators. Constant federal requirements may assist mitigate operational complications and help enlargement. The IFA warned in opposition to state-level initiatives that would undermine the franchise mannequin.
Though it helps imposing current labor legal guidelines, it opposes the creation of latest regulatory councils that would overburden small companies.
Associated: Greg Flynn Owns 1,245 Eating places and Makes $2 Billion A 12 months. Here is How He Did It.
Wanting ahead
As franchising continues to evolve, the IFA’s 2025 roadmap highlights the group’s dedication to fostering progress, sustainability and resilience in an more and more advanced enterprise atmosphere. The proposed initiatives goal to deal with a few of the most urgent challenges going through franchise homeowners at present, from regulatory burdens to financial pressures, whereas additionally laying the groundwork for long-term innovation and success.
Nonetheless, the success of those initiatives hinges on legislative motion on the federal and state ranges and sustained advocacy from the franchise group. Franchise homeowners and stakeholders play a crucial function in amplifying the IFA’s voice, partaking with policymakers and demonstrating the tangible advantages of a vibrant, honest and aggressive franchise sector.
Associated: See Which Manufacturers Topped Entrepreneur’s forty sixth Annual Franchise 500
