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California Fair Franchising Legislation Passes CA Senate!

Posted on Date: May 28, 2013

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May 28, 2013. Fair franchising legislation authored by State Senator Hannah-Beth Jackson and sponsored by the AAFD has passed in the California State Senate by a vote of 22 Yes and 12 No. There were five abstentions, and just two Republican votes were cast in favor of the measure. Now the legislation moves to the State Assembly, where both sides are expected to offer amendments.

AAFD Chairman, Robert Purvin, was pleased with this second important step for the CA Senate Bill 610, which just a month ago was passed out of the Senate Judiciary Committee. "This is the best opportunity in years to have major franchisee protection legislation enacted to protect the vital interests of franchise owners," said Purvin.

Senate Bill SB610 will impose an affirmative and enforceable duty of good faith and fair dealing between franchisors and franchisees. If passed, California law will require that franchisors act fairly and in good faith when enforcing one-sided franchise agreements. The bill also protects the right of franchisees to organize and support independent franchisee associations.

The AAFD appreciates the efforts of many members and friends who voiced support for this important legislation! Next, advocates for the bill will turn their attention to California State Assembly offices.

The AAFD has recommended some amendments to further improve the effects of the bill. Most important is an amendment that would define independent franchisees associations as covered parties under the bill with the right to bring actions on behalf of their members to enforce the benefits of the bill.

Stay tuned for more information to follow. Read More »

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