New England Biz Law Update
A new bill proposed in Congress, the American Franchisee Association Act, is gaining attention as a possible game-changer for franchise labor rights.
The bill, introduced in September, seeks to expand protections for franchise operators, including stronger negotiation rights, transparent contract terms, and protections from unfair termination.
It also calls for more robust enforcement mechanisms at the federal level, addressing concerns that many small franchisees face one-sided terms from corporate franchisors with little recourse.
Unlike worker-focused reforms that have targeted franchisees as employers, this proposal puts franchisees themselves in the spotlight as vulnerable small business owners needing regulatory support.
For HR departments connected with franchise systems, that means:
- Keeping an eye on how this legislation evolves, especially if your franchise network relies on strict compliance or operational control.
- Reviewing franchise agreements to ensure clarity and balance, especially in areas like termination, renewal, and fee structures.
- Preparing for a potential compliance shift that would treat franchisees more like partners than licensees under federal oversight.
