As the 119th Congress continues and the Trump administration prepares to take office, the International Franchise Association (IFA) has released its 2025 Roadmap for Small Business Growth. Designed to strengthen franchise businesses and ensure small business growth, the recommendations focus on five key areas that could shape the future of franchising. This is what franchise owners need to be aware of.
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Joint employer standards
One of the IFA’s top priorities is the codification of the joint employer standard. The aim is to ensure franchisees retain their autonomy while still benefiting from franchisor support and brand consistency, and will bring much-needed clarity to a long-debated issue. A clear co-employer will maintain the standard employees from unfairly classifying franchisees as employees of the franchisor while allowing franchisors to enforce brand standards without incurring additional liability.
The IFA waged a legal battle with the Federal Trade Commission in 2023 and 2024 against the proposed expanded rule. An IFA-led coalition finally defeated the industry-changing rule in federal court last July.
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Growth-promoting tax policies
The organization advocates several key changes in tax policy to create a more favorable environment for franchise growth. One of his main goals is to make Section 199A permanent because it offers significant tax relief to small businesses by reducing taxable income, thereby encouraging reinvestment and expansion.
In addition, IFA seeks improvements to the Work Opportunity Tax Credit (WOTC), which encourages hiring individuals from groups facing employment barriers and helps franchise owners build a more diverse workforce.
Another priority for IFAs is the abolition of the estate tax, often referred to as the “death tax”. Its elimination will ease the financial burden on franchise owners looking to pass on their businesses to the next generation. Finally, IFA is calling for an extension of the veteran tax credit, which rewards employers who hire veterans—a move that not only supports veteran employment, but also strengthens franchise groups.
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Better transparency
One focus of the IFA campaign is to modernize the FTC’s Franchise Rule, which requires franchisors to disclose key details to potential franchisees and strengthens presale disclosure requirements. For the IFA, increasing 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, IFA aims to reduce friction in the franchising process and drive long-term success for all parties involved.
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Coping with regulatory burdens
Excessive regulations and fees can place significant financial and operational burdens on franchise owners, making it difficult to compete and grow. To address these issues, the IFA is advocating for simplified rules and fairer fee structures, allowing small business owners to focus on growth and sustainability. Its roadmap includes the following initiatives, each designed to support franchisees:
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Improve access to SBA loans: SBA loans are a lifeline for many franchisees and offer affordable financing options to start or expand their business.
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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 issues 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 and adds 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 can help reduce operational headaches and support expansion. The IFA has warned against state-level initiatives that could disrupt the franchise model.
While he supports the enforcement of existing labor laws, he opposes the creation of new regulatory boards that could overburden small businesses.
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Looking forward
As franchising continues to evolve, the IFA’s roadmap to 2025 highlights the organisation’s commitment to promoting 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 laying the groundwork for long-term innovation and success.
However, the success of these initiatives depends on legislative action at the federal and state levels and continued advocacy by the franchising community. Franchise owners and stakeholders play an important role in raising the voice of the IFA, engaging with policy makers and demonstrating the tangible benefits of a vibrant, fair and competitive franchise sector.
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