TITLE: The New Franchise Law That Could Change Everything | Dr. John P. Hayes - With Sarah Davies

DESCRIPTION:

John Hayes interviews Sarah Davies, the general counsel of the International Franchise Association, about the American Franchise Act. The Act aims to stabilize the "joint employer" standard under the NLRA and FLSA, which has seen shifting interpretations since the 2015 Browning-Ferris decision. Davies explains that this volatility has negatively impacted franchisors' willingness to provide optional operational support, such as sample handbooks, job descriptions, and training, and has also harmed franchisee expectations and business valuations. She further clarifies that the Act is a narrow, franchise-specific employment bill that does not preempt state laws or affect franchise relationship laws, renewal rights, or employee "good cause" termination standards. It does, however, preserve joint-employer liability when franchisors exercise substantial direct and immediate control over essential employment terms. The conversation also touches on the bipartisan congressional support for the Act, the IFA's advocacy resources, and state developments in Maryland and Virginia. Additionally, Davies mentions the IFA's September Capitol Hill fly-in and the "Franchising Means Local" campaign.

- With Sarah Davies

TIMESTAMPS:

00:00 American Franchise Act Overview

01:10 Joint Employer Volatility

04:07 How Joint Employer Hurts Support

05:29 State Laws and Preemption

08:03 Good Cause and Renewal Myths

09:33 Economic Stakes for Franchising

12:27 One Size Fits All Critiques

17:32 Bipartisan Path and Advocacy

20:28 Other Issues and Capitol Hill Fly In

LINKS:

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