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Franchise owners in California are trying again to get a law that better protects their rights. The latest piece of legislation, drafted by franchise owners themselves, is the California Small Business Investment Protection Act (AB 1141). The bill was submitted to California’s assembly and senate in an attempt to ease the process for franchise owners to transfer their businesses and renew licenses, as well as provide greater protection from unreasonable terminations. “Passing this law will be a large step to provide balance back into the [franchise] industry, which is needed so franchises continue investing into the industry and creating jobs in California,” says Keith Miller, a Greater Sacramento-based Subway franchise owner. Miller, who is chairman of the Coalition of Franchisee Associations, a franchisee group represented by some of the nation’s largest brands, helped draft the bill along with other franchisee leaders. A group of franchise owners made a similar attempt last year but the bill failed to proceed to the floor of the assembly. Now two more bills, SB 610 and SB 538, have been introduced by Republican Assemblymember Brian Dahle (District 1). California led the way in the regulation of franchise sales in 1970 with its California Franchise Investment Law. The law – which required franchisors to disclose certain information to investors – spread to other states before becoming a federal law. Today, however, California’s franchise laws are out-of-date and do not even match federal standards. For more info, click here
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