Thursday, August 18

California Legislators to Consider Changes to Franchising Law

California’s State Assembly is currently considering passing a bill that would make dramatic alterations to the state’s franchising law.According to an August 12 MSNBC article, Senate Bill 610 (SB 610) would make it much more difficult for franchising corporationsto end licensing agreements with their franchisees.The bill has already been approved in the California State Senate, MSNBC reports, and the State Assembly now has to determine whether or not the state’s current franchising law is able to competently protect franchisees from the “arbitrary whims” of large corporations like McDonald’s.

Another clause of SB 610 would make it so franchise licensing agreements won’t be able to prevent franchisees from being a part of franchisee associations or selling the franchises if they chose, according to the MSNBC article.

SB 610 was also introduced as a way to protect employees of franchises against wage theft and poor working conditions, according to MSNBC. The law has backing from labor unions like SEIU, which has provided financial support to fast food strikes around the country.Conversely, the bill is being opposed by large business organizations like the California Chamber of Commerce and the International Franchise Association (IFA), MSNBC reports.

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