H.R. 5267, the American Franchise Act, advanced out of committee on July 21, 2026.
H.R. 5267 — American Franchise Act
What it does
This bill amends labor law to make it much harder for franchise workers to hold the parent company (franchisor) legally responsible as a joint employer. It defines 'joint employment' narrowly: a franchisor can only be considered a joint employer if it exercises 'substantial direct and immediate control' over wages, hiring, discipline, or other core employment terms—and carves out many common franchisor practices (setting brand standards, minimum staffing, training materials, performance standards) as NOT counting as control. The effect is to shield franchisors from wage-and-hour claims, union organizing, and workplace safety liability that would otherwise attach to them as employers.
Quorum's transparency scan gave American Franchise Act a high transparency warning.
What happens next
H.R. 5267 advanced out of committee. Next stop: a floor vote.
Who is behind it
Filed by Kevin Hern. Cosponsored by Aaron Bean, Adam Gray, Addison McDowell and Ami Bera.