2026 Franchise Legislative Activity
Like 2025, 2026 is shaping up to be another demanding legislative year. Advancing franchise legislation is a long-term effort—often requiring years to demonstrate both the existence of a problem and the effectiveness of a proposed solution. Franchisee engagement is critical; legislators respond to their constituents, and sustained advocacy makes the difference.
Below is a snapshot of where AAFD’s legislative efforts stand as the new year begins.
For any inquiries related to AAFD / Franchisee Legislative advocacy efforts, please reach out to Keith Miller directly.
KEITH MILLER
Trustee and Director of Public Affairs
Federal Legislation
Private Right of Action for FTC Franchise Rule Violations – Franchisee Freedom Act
H.R. 4614 enters the second year of the 119th Congress. AAFD will intensify its focus on advancing this bill and will continue to call on franchisees to engage directly with their members of Congress.
AAFD members are in nearly every congressional district in the country. Sharing your name and state allows us to connect with your member of Congress and ask them to cosponsor H.R. 4614. The more constituents they hear from, the stronger our case becomes for this critical legislation.
ACTION ALERT
AAFD supports this legislation and calls on ALL franchisees to actively engage.
Joint Employer Legislation – American Franchise Act
H.R. 5267 enters the second year of the 119th Congress. AAFD will work to ensure the House bill is updated during committee markup to reflect the agreed-upon redline language, while also building Senate support—particularly among Democratic senators—to reach the 60 votes required for advancement.
State Legislation
C.A. 2632
introduced by
Republican, State Assembly
District 7, Folsom
California
California Assembly Bill 2632, introduced by Assemblymember Hoover on February 20, 2026, is a significant step forward for franchisee rights across the state.
If passed, this bill will hold franchisors legally accountable for how they collect and spend fees designated for specific purposes — including advertising funds, loyalty programs, and technology fees. Put simply: your fees must be used for what they were intended for. Nothing more, nothing less.
H.B. 69
introduced
by Del. Dan Helmer (D-10)
Virginia
H.B. 69, introduced by Del. Dan Helmer (D-10), is a reintroduction of last year’s SB798. The bill would ban noncompete clauses in franchise agreements and require franchises operating in Virginia to be governed by Virginia franchise law. It passed the House unanimously (97-0) and now moves to the Senate, where a more challenging path is expected.
ACTION ALERT
AAFD supports this legislation and calls on Virginia franchisees to actively engage.
H.B. 2038
introduced
by Rep. Stacey Travers (D-12)
Arizona
H.B. 2038, introduced by Rep. Stacey Travers (D-12), is a comprehensive franchise relationship bill addressing termination and transfer rights. AAFD supports this legislation and calls on Arizona franchisees to actively engage.
ACTION ALERT
AAFD supports this legislation and calls on Arizona franchisees to actively engage.
H.B. 733
introduced
by Rep. Michael Marcotte (R, Orleans-Lamoille)
Vermont
H.B. 733, introduced by Rep. Michael Marcotte (R, Orleans-Lamoille), is another comprehensive franchise relations bill that includes termination and transfer rights and bans noncompete clauses. AAFD supports this legislation and urges Vermont franchisees to participate in advocacy efforts.
ACTION ALERT
AAFD supports this legislation and calls on Vermont franchisees to actively engage.
