White House Backs Franchise Model at McDonald's Policy Summit

At a McDonald's Impact Summit in Washington, President Trump publicly endorsed the franchise business model and called for a commonsense federal joint employer standard that protects franchisee independence. The International Franchise Association responded with a formal statement welcoming the remarks and signaling it would work with the administration and Congress to move the American Franchise Act forward.

What Presidential Backing Does and Doesn't Do

A presidential endorsement at a high-profile industry event doesn't pass legislation, but it changes the political calculus for lawmakers considering cosponsorship. The American Franchise Act already had 39 bipartisan House cosponsors before the summit. White House support shifts the question from whether the bill has political cover to how fast it can move through committee.

Ten Years of Shifting Rules

The joint employer standard has changed with each administration since 2015. The NLRB's 2023 rule under the Biden administration broadened the definition, exposing franchisors to labor liability at locations they don't directly staff or manage. That uncertainty has translated into contractual and compliance changes at thousands of franchise systems, with costs that ultimately flow to franchisees. Codifying a stable standard would break that cycle.

Why Franchise Operators Should Track This Closely

For active operators, the joint employer question isn't abstract. It shapes what franchise agreements say about HR practices, what indemnification clauses look like, and how much operational autonomy local owners retain. The IFA represents nearly 831,000 franchise establishments supporting 8.8 million jobs. A stable legal framework at this scale has material consequences for unit-level economics and growth planning.