With the 119th Congress underway and The Trump administration preparing to take office, to International Franchise Association (IFA) has described it The 2025 Roadmap for Small Business Growth. The recommendations, designed to strengthen franchises and foster small business growth, focus on five key areas that could shape the future of franchising. Here's what franchise owners should take care of.
Common Employer Standards
One of the main priorities of the IFA is the codification of ia the joint employer standard. The aim is to ensure that franchisees retain autonomy while still benefiting from franchisor support and brand consistency, and would bring much-needed clarity to a long-debated issue. A clear common employer standard would protect employees of franchisees from being unfairly classified as employees of the franchisor, while allowing franchisees to enforce brand standards without taking on additional liability.
IFA developed one legal battle with Federal Trade Commission in 2023 and 2024 against the proposed extended 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 in tax policy to create a more favorable environment for franchise growth. One of its main goals is to make Section 199A permanent discount, as it offers important tax relief small businesses by reducing taxable income, thereby encouraging reinvestment and expansion.
Furthermore, the IFA requires improvements in Work Opportunity Tax Credit (WOTC), which promotes the employment of individuals from groups facing employment barriers and helps franchise owners build a more diverse workforce.
Another priority for the IFA is the abolition 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 on to the next generation. Recently, IFA is calling for an extension of veterans tax creditwhich rewards employers who hire veterans—a step that not only supports the hiring of veterans, but also strengthens franchise teams.
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Better transparency
One of the IFA campaigns focus is modernizing the FTC Rule of exclusivitywhich requires franchisors to disclose key details to prospective 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 risks and benefits. This, in turn, helps prevent misunderstandings and disputes, leading to stronger and more sustainable franchise relationships.
Advocating for clearer DISCLOSUREIFA aims to reduce friction in the franchise process and drive 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 more difficult to compete and thrive. To address these challenges, the IFA is advocating simpler 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 loan: SBA loans are a lifeline for many franchisees, providing affordable financing opportunities 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 variety of state privacy laws create compliance challenges and increase 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 policies at the state level
State-level policies often add complexity to multi-unit franchise operators. Consistent federal standards can help mitigate that operational headache and support expansion. The IFA warned against state-level initiatives that could undermine the franchise model.
Although she supports enforcement of existing labor laws, she opposes the creation of new regulatory burdens that could overburden small businesses.
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Waiting
As the franchise continues to evolve, IFA's 2025 roadmap highlights the organization's commitment to drive growth, sustainability and sustainability 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 the long term. NEW and success.
However, the success of these initiatives depends on legislative action at the federal and state levels and sustained advocacy by the franchise community. Franchise owners and stakeholders play a critical role in amplifying the IFA's voice, engaging with policy makers and demonstrating the tangible benefits of a vibrant, fair and competitive franchise sector.
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