We have received text from H.R. 5267: American Franchise Act. This bill was received on 2025-09-10, and currently has 18 cosponsors.
Here is a short summary of the bill:
The American Franchise Act aims to clarify the legal relationship between franchisors and franchisees, particularly concerning employment practices. It recognizes the franchise model as a structured business relationship where franchisees operate as independent businesses using the franchisor's operational system and brand. The bill outlines several significant points:
Findings
- Franchises allow independent business owners (franchisees) to sell goods and services under the franchisor’s brand and system.
- Franchisors maintain certain quality and operational standards to ensure brand consistency, which helps meet consumer expectations and increases business value.
- Franchisees independently manage their operations and labor relations.
- The franchise model has a substantial economic impact, generating around $825 billion in output and employing approximately 8.4 million workers in the U.S. as of 2022.
- Uncertainty over "joint employer" status has created challenges for franchising, leading to potential liabilities for franchisors based on their brand management activities.
Definitions and Clarifications
The bill introduces definitions related to the concept of "joint employment" in franchising. It specifies:
- Joint Employer: A franchisor will be considered a joint employer only if it possesses and exercises substantial direct and immediate control over one or more essential terms and conditions of employment at the franchisee's location.
- Direct and Immediate Control: This term refers to the franchisor's authority to determine various employment aspects, such as wages, benefits, work hours, hiring practices, discipline, and supervision of franchisee employees.
Joint Employment Standards
For the purpose of assessing joint employer status, the franchisor must show significant control over essential employment terms, which include:
- Wages
- Benefits
- Hours of Work
- Hiring
- Discipline and Discharge
- Supervision
- Direction
Amendments to Existing Labor Laws
The Act amends the National Labor Relations Act and the Fair Labor Standards Act to include these clarifications regarding joint employment specifically in the context of franchising.
Applicability
The provisions of this Act would not retroactively apply to legal proceedings that started before its enactment.
Relevant Companies
- MCD - McDonald's Corporation: As a major franchisor in the fast-food industry, this legislation could influence its legal liabilities regarding franchising operations and employment practices.
- DNKN - Dunkin' Brands: Similar to McDonald's, Dunkin' operates extensively through franchises, and the bill’s changes concerning joint employer liability may affect its operational standards and control over franchisees.
- PZZA - Papa John's International: As a franchisor, Papa John's may also face alterations in liability concerning how it manages its franchisees in terms of hiring and employment conditions.
Representative Kevin Hern Bill Proposals
Here are some bills which have recently been proposed by Representative Kevin Hern:
- H.R.5267: American Franchise Act
- H.R.5142: Home Health Stabilization Act of 2025
- H.R.3512: Tackling Predatory Litigation Funding Act
- H.R.3288: Access to Prescription Digital Therapeutics Act of 2025
- H.R.2436: To amend the Internal Revenue Code of 1986 to treat distributions from health savings accounts for funeral expenses of the account beneficiary as qualified distributions.
- H.R.1924: Securing Access to Care for Seniors in Critical Condition Act of 2025
You can track bills proposed by Representative Kevin Hern on Quiver Quantitative's politician page for Hern.
Representative Kevin Hern Net Worth
Quiver Quantitative estimates that Representative Kevin Hern is worth $108.0M, as of September 18th, 2025. This is the 15th highest net worth in Congress, per our live estimates.
Hern has approximately $25.6M invested in publicly traded assets which Quiver is able to track live.
You can track Representative Kevin Hern's net worth on Quiver Quantitative's politician page for Hern.
Representative Kevin Hern Stock Trading
We have data on up to $107.4M of trades from Representative Kevin Hern, which we parsed from STOCK Act filings. Some of the largest trades include:
- A February 1st, 2023 sale of up to $5M of $PXD. The stock has risen 20.39% since then.
- A January 4th, 2023 sale of up to $5M of $MSFT. The stock has risen 122.62% since then.
- A September 20th, 2021 sale of up to $1M of $SPY. The stock has risen 51.87% since then.
- A May 18th, 2021 purchase of up to $500K of $EMR. The stock has risen 39.04% since then.
- A June 25th, 2021 purchase of up to $500K of $JNJ. The stock has risen 7.91% since then.
You can track Representative Kevin Hern's stock trading on Quiver Quantitative's politician page for Hern.
This article is not financial advice. See Quiver Quantitative's disclaimers for more information.
