The International Franchise Association (IFA) recently published its 2025 year-in-review. Titled, “2025: A Year That Redefined the Future of Franchising,” the report takes a (mostly) month-by-month look back at some of the IFA’s most notable activities over the past year. Here, franchise attorney Jeffrey M. Goldstein shares some of his thoughts on the IFA’s report, as well as some additional insights on the year that was.
“One of the Most Consequential Years in Modern Franchising”
According to the IFA, “2025 will be remembered as one of the most consequential years in modern franchising.” To support this thesis, the IFA writes that the year was “defined by collective momentum, clarity and connection . . . when the entire franchise community . . . along with policymakers and stakeholders came together to support the business model that supports nearly 850,000 local businesses across the U.S.”
More specifically, the IFA highlights the first-ever World Franchise Show that took place in May in Miami, FL, and the IFA’s support of the One Big, Beautiful Bill Act (OBBBA) and American Franchise Act (AFA) in Washington, D.C. The OBBBA took effect on July 4, 2025, providing “essential tax relief for franchise businesses.” The AFA was introduced in September, proposing a, “bipartisan legislative approach designed to codify a clear, permanent joint employer standard [that] protects both franchisees’ independence and franchisors’ ability to provide brand support without triggering legal liability.”
Notably, however, the AFA has not progressed in the U.S. House of Representatives since its introduction, and similar legislative efforts have failed in the past. For an overview of the bill, you can read this article we published last year: What is the “American Franchise Act”?
The IFA’s $5 Million “Franchise Means Local” Campaign
In October, the IFA launched its nationwide “Franchise Means Local” campaign. The multi-year $5 million campaign is intended to, “reinforce that franchises are small, local businesses, rather than faceless corporations.” Through this campaign, the IFA hopes to help the public better understand the nature of the franchisor-franchisee relationship and encourage prospective customers to view franchise owners as a “network of neighbors.”
This could help some franchise owners. Many people make an effort to “shop local,” and in doing so, they often avoid well-known brands. However, as franchisees (and prospective franchisees) well know, many franchised outlets are local businesses. As a result, if more people appreciate that franchisees are often members of their community and also provide jobs to other members of their community, this could have a positive impact going forward.
2025 Built a “Foundation for 2026” that Reinforces the Value of Franchising
Overall, the IFA writes that 2025 was a “year of progress” that built a “foundation for 2026.” For the remainder of 2026, the IFA plans to “continue amplifying the voices of franchisees [and] advancing pro-growth policy.” What impact this will have remains to be seen, but overall, the IFA’s positive outlook can be viewed as a positive sign—particularly compared to its less optimistic outlook in the years immediately following the COVID-19 pandemic.
What is in store for 2026? At present, the most significant potential development is progress related to the American Franchise Act. As noted above, the AFA has stalled in the House, but on February 2, 2026, the IFA wrote that momentum in support of the bill is growing. Specifically, the IFA cited support from the Problem Solvers Caucus, a bipartisan group of 45 House members “committed to advancing common-sense solutions to key issues facing our nation.”
If passed, the AFA would codify the “joint employer” standard established by the National Labor Relations Board (NLRB) in 2020. While this standard remains in effect today, it has faced numerous challenges, and enshrining it in federal law would help solidify its standing for the future.
Is 2026 Going to Be a Good Year to Buy a Franchise?
With all of this in mind, is 2026 going to be a good year to buy a franchise? While the IFA’s answer would almost certainly be a resounding “Yes,” the IFA is an advocacy organization focused on growth within the franchise industry. Ultimately, prospective franchisees need to make their own decisions based on their individual circumstances. For those who are thinking about buying a franchise in 2026, some key considerations include:
- Access to Financing – Interest rates continue to make national headlines, and with market instability having a major impact on many individuals’ savings (and confidence in their savings for the future), access to financing is likely to be a key consideration for many prospective franchisees in 2026.
- Viable Franchise Concepts – Today, there are more franchise opportunities than ever before. Along with tried-and-true concepts and market segments, there are also several new disruptive concepts that prospective franchisees may (or may not) want to consider.
- Viable Outlet Locations – For those considering a home-based business, site and territory selection are key considerations for prospective franchisees. This requires careful consideration of local brand recognition and both inter- and intra-brand competition, among other factors.
- Franchisor Financial Stability – Franchisors are required to provide financial disclosures in their Franchise Disclosure Documents (FDD). A franchisor’s financial stability is a key factor to consider when evaluating a franchise opportunity.
- Franchise Terms and Conditions – In all situations, prospective franchisees must ensure they have a clear and comprehensive understanding of the terms and conditions of their franchise agreement. While it is important for prospective franchisees to review franchisors’ FDDs and franchise agreements, they should also have these documents reviewed by an experienced franchise attorney.
Request a Free Consultation with Franchise Attorney Jeffrey M. Goldstein
Are you thinking about buying a franchise in 2026? If so, we invite you to contact us to learn more. To request a free consultation with franchise attorney Jeffrey M. Goldstein, please call 202-293-3947 or tell us how we can help online today.
