With the 119th Congress underway and the Trump administration preparing to take office, the International Franchise Association (IFA) has outlined its 2025 Roadmap for Small Business Growth. The recommendations, designed to bolster franchise businesses and drive small business growth, focus on five key areas that could shape the future of franchising. Here’s what franchise owners should watch for.
Joint employer standards
One of IFA’s top priorities is codifying a joint employer standard. The goal is to ensure franchisees maintain autonomy while still benefiting from franchisor support and brand consistency and would bring much-needed clarity to a long-debated issue. A clear joint employer standard would protect employees of franchisees from being unfairly classified as employees of the franchisor while allowing franchisors to enforce brand standards without taking on additional liability.
The IFA waged a legal battle with the Federal Trade Commission in 2023 and 2024 against the proposed expanded rule. The IFA-led coalition ultimately defeated the industry-changing rule in federal court last July.
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Tax policies that promote growth
The organization is advocating for several key changes to tax policy to create a more favorable environment for franchise growth. One of its primary goals is to make the Section 199A deduction permanent, as it offers significant tax relief to small businesses by reducing taxable income, thereby encouraging reinvestment and expansion.
Additionally, the IFA seeks improvements to the Work Opportunity Tax Credit (WOTC), which incentivizes hiring individuals from groups facing employment barriers and helps franchise owners build a more diverse workforce.
Another priority for the IFA is the repeal of the estate tax, often referred to as the “death tax.” Its elimination would ease the financial burden on franchise owners looking to pass their businesses down to the next generation. Lastly, the IFA is calling for an extension of the veteran tax credit, which rewards employers who hire veterans — a step that not only supports veteran employment but also strengthens franchise teams.
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Better transparency
One of the IFA campaign’s focuses is modernizing the FTC’s Franchise Rule, which requires franchisors to disclose key details to potential franchisees and strengthens pre-sale disclosure requirements. For the IFA, improving transparency is about more than just compliance — it’s about creating an environment where franchisees can make well-informed decisions with a clear understanding of the risks and rewards. This, in turn, helps prevent misunderstandings and disputes, leading to stronger, more sustainable franchise relationships.
By advocating for clearer disclosure, the IFA aims to reduce friction in the franchising process and foster long-term success for all parties involved.
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Fighting regulatory burdens
Excessive regulations and fees can place significant financial and operational strain on franchise owners, making it harder to compete and thrive. To address these challenges, the IFA is advocating for streamlined regulations and fairer fee structures, ensuring small business owners can focus on growth and sustainability. Its roadmap includes the following initiatives, each tailored to support franchisees:
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Improve access to SBA loans: SBA loans are a lifeline for many franchisees, offering affordable financing options to start or expand their businesses.
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Reduce credit card transaction fees: Many franchise businesses rely heavily on card payments, and high transaction fees can erode already thin profit margins.
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Support a balanced national privacy law: Currently, a patchwork of state privacy laws creates compliance challenges and increases costs for franchisees operating in multiple states.
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Challenge the Corporate Transparency Act (CTA): The CTA imposes new reporting requirements on small businesses, adding administrative burdens.
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Blocking harmful state-level policies
State-level policies often add complexity for multi-unit franchise operators. Consistent federal standards could help mitigate operational headaches and support expansion. The IFA warned against state-level initiatives that could undermine the franchise model.
Although it supports enforcing existing labor laws, it opposes the creation of new regulatory councils that could overburden small businesses.
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Looking forward
As franchising continues to evolve, the IFA’s 2025 roadmap highlights the organization’s commitment to fostering growth, sustainability and resilience in an increasingly complex business environment. The proposed initiatives aim to address some of the most pressing challenges facing franchise owners today, from regulatory burdens to economic pressures, while also laying the groundwork for long-term innovation and success.
However, the success of these initiatives hinges on legislative action at the federal and state levels and sustained advocacy from the franchise community. Franchise owners and stakeholders play a critical role in amplifying the IFA’s voice, engaging with policymakers and demonstrating the tangible benefits of a vibrant, fair and competitive franchise sector.
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