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AAFD Endorses Fair Franchising Legislation Introduced In California

By Published On: April 3rd, 2013

The AAFD Joins Coalition of Franchisee Associations in Support of California Senate Bill 610 and Assembly Bill 1141.

SAN DIEGO, APRIL 2013 – The American Association of Franchisees & Dealers (AAFD), a non-profit trade association that represents the interests of franchisees and independent dealers, announced today its support for two pieces of franchising fairness legislation recently introduced in the California State Senate and State Assembly.

Assembly Bill 1141, introduced by Assemblyman Brian Dahle (R-Dist. 1), defines several common abuses in franchising as unfair business practices with respect to a franchisee’s right to renew, terminate and transfer a franchised business. The bill also establishes a statutory duty of good faith and fair dealing between franchisors and franchisees and would strengthen the right of franchisees to join and support franchisee associations.

Senate Bill 610, introduced by State Senator Hannah-Beth Jackson (D-District 19), is less ambitious than AB 1141 but would also create a statutory duty of good faith and fair dealing as well as increase the protection of the right of franchisees to join and support franchisee associations.

“Both pieces of legislation look to have bipartisan support, so 2013 might be the best opportunity for meaningful franchise reform in years,” said Robert Purvin, Chairman of the AAFD and author of The Franchise Fraud: How to Protect Yourself Before and After You Invest. “The AAFD supports both bills and considers them significant steps toward creating a level playing field in franchising.”

The AAFD is joining a coalition of franchisee associations in its support of AB 1141 and SB 610, including the Asian American Hotel Owners Association (AAHOA), the Coalition of Franchisee Associations (CFA), and the National Coalition of 7-Eleven Dealers, among others.

The committee hearings for both bills are slated for mid-April, though the exact date has yet to be announced. The AAFD is actively encouraging all California franchisees to fax and email letters of support for both bills to their state representatives, and especially to Judiciary Committee Members in both houses:

Senate Judiciary Committee contacts:  http://sjud.senate.ca.gov/

Assembly Judiciary Committee contacts:  http://ajud.assembly.ca.gov/membersstaff

All franchisees near Sacramento are encouraged to attend the hearings as scheduled and demonstrate support for the bills. The date of the hearings will be announced at www.leginfo.ca.gov.

To learn more about the AAFD, visit the organization’s website at www.AAFD.org.

 

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Written by : Robert L. Purvin

Robert Purvin is the Chairman and CEO of the American Association of Franchisees and Dealers, a national non-profit trade association that is dedicated to supporting and protecting the rights of franchise owners. The AAFD's mission is to define, identify and promote Total Quality Franchising practices, and the AAFD supports is mission by: Promoting strong and effective independent franchisee associations as affiliated chapters of the AAFD. The development of the AAFD's Fair Franchising Standards, the most comprehenisve body of negotiated principles of recommended franchise practices in existence. The advocacy of fair and balanced franchise agreements and relationships that respect the legitimate business interests of both franchisors and franchisees for the good of the franchise relationship. The education of franchisees and prospective franchisees by the development and publication of the AAFD Fair Franchising Standards and the promotion of the AAFD Franchisee Bill of Rights.