A bipartisan group in the U.S. House of Representatives introduced the American Franchise Act (H.R. 5267), on Sept. 10, 2025, taking direct aim at the standard for determining when franchisors may be considered joint employers of a franchisee’s employees under the National Labor Relations Act (NLRA) and Fair Labor Standards Act (FLSA). Broad interpretations of joint employment expose franchisors to potential joint liability, based solely on a franchisor exercising the kind of brand standards and control inherent to franchising. Meanwhile, the constant regulatory flux makes it difficult for franchise businesses to structure their operations or assess risk with certainty. The Act only applies to the franchisor-franchisee relationship and does not affect joint employer determinations outside of franchising.