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AAFD Advances Legislative Influence In Congress

Posted on Date: Feb 10, 2020

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The AAFD is pleased to forward two comment letters issued this past week by AAFD Chairman, Robert Purvin and the AAFD’s Director of Public Affairs and Engagement, Keith Miller:

  1. The AAFD has expressed formal support of new bipartisan legislation introduced in Vermont to protect franchisee rights in a manner similar the California law passed in 2015. The AAFD has been at the forefront of promoting this legislation and are pleased to attach our support letter as well as a link to the bill as introduced in the Vermont legislature.
  2. The AAFD has sent a comment letter to the US House of Representatives supporting a Joint Employer finding when a franchisor excerpts undue control over a franchisee’s business ownership. The AAFD sent a similar comment letter to the National Labor Relations Board last year when the NLRB was evaluating its existing Obama era Joint Employer Rule. Congress is currently debating HR 2474, called the PRO Act which, in part, would adopt a pro-franchisee joint employer standard. The PRO Act is a pro labor bill, which is largely controversial for franchisees, and the AAFD has not commented regarding the labor relations aspects of the bill. But franchisees should take note: The AAFD has commented in support of a portion of the bill that would codify joint employer status on a franchisor that unduly erodes a franchisee’s equity ownership of the franchised business.  This is consistent with keeping discussions open on issues that impact franchisee equity and control, and we will continue to push to further those discussions.

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