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California Fair Franchising Legislation Approved by Assembly Judiciary Committee

Posted on Date: Jun 19, 2013


June, 18, 2013. The AAFD just received word that California Senate Bill 610 has been approved by the CA Assembly Judiciary Committee by a vote of 7 – 2 in favor of moving the bill forward. This is another big step for the bill which still faces a few hurdles to passage into law.  On July 2nd, the bill will go before the Assembly Committee on Business Professions and Consumer Protections. If approved by this last committee, it will move to the floor of California Assembly for a full vote. If it passes the Assembly, it will finally arrive on the desk of Governor Jerry Brown for approval.

The AAFD is a primary sponsor of SB 610, which would create an affirmative statutory duty of good faith and fair dealing in franchise relationships and reinforce the right of franchisees to join and participate in franchisee associations. The bill also provides franchisees the right to sue if they believe their franchisor has not acted in good faith with regard to franchise sales, renewals, transfers and terminations.

AAFD CEO, Robert Purvin testified in support of the bill before the Senate Judiciary Committee and plans on further testimony before the Assembly Business and Professions Committee on July 2nd.  Purvin stated, “This may be the best opportunity yet to approve legislation that protects the rights of franchisees. The current makeup of the California government, including both houses of the legislature and the governor’s office are more pro-franchisee than we’ve seen in a long while. This gives me a lot of hope for SB 610 even though it is fiercely opposed by the International Franchise Association and other associations that represent the interest of franchisors.”

The AAFD once again urges all California franchise owners to contact their State Assembly Representative and voice your support of SB 610. Show your support by calling and faxing California State Assembly offices with a simple statement urging a YES vote for Senate Bill 610.  The coming two weeks are critical.  Three calls will be huge; ten calls even more so!  Use this link for a list of all California Assembly members and their phone numbers.

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