San Diego, December 12, 2025
The Asian American Hotel Owners Association (AAHOA) is urging Congress to pass the bipartisan American Franchise Act (AFA), which aims to clarify joint-employer standards for franchises. With 51 bipartisan cosponsors, the AFA seeks to stabilize the regulatory environment affecting franchise businesses and enhance their growth potential. AAHOA highlights the AFA’s importance in contributing to the economic backbone of the U.S., supporting nearly 8.8 million jobs and approximately $900 billion in economic output. The coalition backing the act underscores the urgent need for predictable legislation that aids small business owners in the hospitality sector.
San Diego, California – The business landscape continues to evolve with strong calls for legislative support that could enhance economic growth throughout the country. Recently, the Asian American Hotel Owners Association (AAHOA) has amplified its voice within a coalition of over 100 organizations advocating for the passage of the bipartisan American Franchise Act (AFA), H.R. 5267. This significant piece of legislation seeks to establish a clear and consistent joint-employer standard critically needed for franchise businesses to flourish, including the thousands of hotels operated by AAHOA members.
The AFA, now boasting 51 bipartisan cosponsors in the U.S. House of Representatives, addresses a longstanding issue that has resulted in fluctuating interpretations of joint-employer standards. Such uncertainties have not only posed risks to franchise businesses but have also hindered their ability to grow and fully realize their potential to contribute to the U.S. economy. By providing long-term stability, the AFA aims to protect the interests of countless small business owners across the country, allowing them to focus on innovation and expansion.
The Economic Backbone of the Franchise Model
The franchise business model represents a significant facet of the U.S. economy, generating approximately $900 billion in economic output and supporting around 8.8 million jobs. This fact underscores the pivotal role franchises play in local economies and their ability to create sustainable employment opportunities. Not just hotel owners, but entire communities benefit from the growth of these businesses, reinforcing the need for a stable legislative framework that fosters opportunity and resilience.
A Call to Action for Congressional Leaders
Within this context, AAHOA officials have expressed their concerns regarding the detrimental impact an unstable joint-employer framework has had on hotel owners. Leaders within AAHOA have commended Representatives Kevin Hern (R-OK) and Don Davis (D-NC) for their robust support of the AFA, encouraging Congress to expedite the bill’s passage. These representatives are seen as instrumental advocates advancing a franchise-specific joint-employer standard that ensures predictability for business owners.
The Importance of a Predictable Regulatory Environment
Support from AAHOA highlights the critical need for a predictable regulatory environment that can stimulate business growth and job creation. A stable joint-employer standard would not only mitigate rising legal costs associated with ambiguous interpretations but would also empower small business owners to make decisions that foster growth and innovation within their communities. As AAHOA officials point out, this legislation is not only sensible but necessary for both hotel owners and the vast workforce relying on the hospitality sector.
A Coalition for Success
The coalition supporting the AFA includes a diverse array of state associations and national organizations, reflecting a broad consensus on the need for regulatory clarity. This coalition emphasizes that a unified approach to address joint-employer standards will ensure the voices of America’s hotel owners and franchisees are directly represented in federal policymaking. By coming together, organizations can create a stronger front in advocating for policies that support small businesses and the economic vitality of local communities.
Looking Forward
As the AFA progresses through Congress, stakeholders from various sectors are optimistic about the potential benefits it could bring. The updated version of the AFA has been collaboratively developed, reflecting inputs from legal experts and franchisee attorneys, among others. This collaborative approach highlights the commitment of AAHOA and its partners to advocate for policies driven by practicality and an understanding of the current needs in the hospitality industry.
The passage of the AFA would represent a significant leap forward, cementing a foundation for small businesses in the franchise sector to thrive. This stability is essential not only for hotel owners but also for the millions of employees and community members whose livelihoods depend on the hospitality industry—a sector that stands as a hallmark of American entrepreneurial spirit.
Frequently Asked Questions
- What is the American Franchise Act (AFA)?
- The AFA, H.R. 5267, is bipartisan legislation aimed at providing long-term clarity to the joint-employer standard, addressing a longstanding issue that has created uncertainty and hindered growth for franchise businesses nationwide, including thousands of AAHOA member hotels.
- Why is AAHOA supporting the AFA?
- AAHOA supports the AFA to establish a clear and consistent joint-employer standard, which is crucial for franchise businesses that have faced shifting interpretations of this standard across different presidential administrations, leading to increased risk and slowed growth.
- What is the significance of the coalition supporting the AFA?
- The coalition, comprising over 100 business, advocacy, and diversity organizations, emphasizes that the franchise business model generates approximately $900 billion in U.S. economic output and supports 8.8 million jobs, underscoring its vital role in local communities.
- Who are the key advocates for the AFA in Congress?
- Representatives Kevin Hern (R-OK) and Don Davis (D-NC) have been leading advocates for advancing a durable, franchise-specific joint-employer standard in both chambers of Congress.
- What is AAHOA’s role in the coalition?
- AAHOA’s involvement in this coalition reflects its ongoing commitment to advocating for policies that support the interests of hotel owners and the broader hospitality industry, ensuring that the voices of America’s hotel owners are heard in federal policymaking.
| Key Feature | Description |
|---|---|
| Legislation Supported | American Franchise Act (AFA), H.R. 5267 |
| AAHOA’s Role | Joined over 100 organizations in urging Congress to pass the AFA |
| Joint-Employer Standard | Aims to provide clarity to the joint-employer standard affecting franchise businesses |
| Economic Impact | Franchise business model generates approximately $900 billion in U.S. economic output and supports 8.8 million jobs |
| Key Congressional Advocates | Representatives Kevin Hern (R-OK) and Don Davis (D-NC) |
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