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AAFD Legislative Update – June 4, 2020

While COVID-19 has stopped a lot of legislative efforts, it has also brought in new issues, many of them being fast tracked to help deal with the current issues. Here’s a brief legislative update:

CARES Act and PPP: While many documents have been put out on this, and endless webinars have been done around the forgiveness of the PPP loans, the latest from the Small Business Administration (SBA) was released on May 28, in form of the “Paycheck Protection Program Interim Final Rule – Requirements – Loan Forgiveness”.

PAYCHEX Joins the AAFD’s Suppliers Network!

The AAFD is pleased to welcome Paychex as the newest member of the AAFD’s Suppliers Network. Widely regarded as the leading provider of Payroll and HR Solutions, Inc. Magazine recently rated Paychex as the “Number one provider of Payroll and HR Solutions for small businesses.”

Franchisor Relief Response Survey – AAFD Town Hall Series Announced

The AAFD is conducting a survey of Franchisor Relief Support in response to the Coronavirus pandemic and we want to invite participation (and share results) with a wide array of franchisee associations.

The Coronavirus Outbreak: a Force Majeure event?

Franchisees nationwide are facing devasting impact on their businesses, and increasingly mandated store closures. Naturally, franchisees face concerns regarding impact on their franchise and lease agreement obligations to stay open, and equally important, to pay fees required by such agreements. Most, but not all, franchise agreements, and most lease agreements, provide protection to both franchisors and franchisees, and landlords, in the form of a Force Majeure or Act of God clause.  These clauses act to forgive (waive) performance when business is disrupted by an “Act of God.” Regardless of the existence of such provisions in the franchise agreement, franchisees are advised to seek protection from their contract obligations if their business is disrupted by an Act of God.

Act Today! Request Disaster Assistance for Franchisees

S.3548 has been introduced in the Senate that specifically takes action to assist small business owners from the effects of Coronavirus pandemic. We now have a starting point to work from and will do our best to keep you up to date on its progress and other legislation that impacts franchisees. The main points of this legislation are to get money into the hands of small business owners through disaster loans, penalty free access to retirement funds, and possibly grants.

Overview of the Families First Coronavirus Response Law

H.R. 6201 did pass the Senate yesterday and was signed into law by the President. The Labor Department will now interpret the law and finalize the rules to execute the law. This chart, provided by Senate staff may help explain some of the paid leave requirements from H.R. 6201.

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