California Assembly Bills 1782 and 2637, which would have improved the regulatory climate for franchises in the state, have been vetoed by Governor Jerry Brown after being passed by an overwhelming majority of the legislature.
The U.S. Small Business Administration (“SBA”), in response to pressure by the International Franchise Association, recently changed its position regarding how it views franchise companies and their affiliates for purposes of determining loan worthiness.
This week, the California legislature nearly unanimously approved Assembly Bill 525, which would (if signed by Gov. Brown) amend the existing California Franchise Relations Act (“CFRA”).
Tomorrow (Monday, June 29, 2015), California State Assembly Bill (AB) 525 will be considered by the Senate Business, Professions and Economic Development Committee. If passed by the Senate, AB 525 will amend the existing California Franchise Relations Act by expanding protections for existing franchisees.
On May 14, 2015, the California state Assembly passed AB 525, a bill that would amend the existing California Franchise Relations Act by expanding the protections for existing franchisees. The bill is now in the Senate for consideration.
2014 was a challenging year for franchising, seeing two new broad-based forms of attack on the franchise model driven by labor unions. The International Franchise Association has created a coalition to fight back.