Legislative update: California Bill – SB919

By Published On: June 4th, 2024

California State Senator Tom Umberg has introduced Senate Bill 919 which would require the registration of franchise sellers. The bill would also allow franchisees to sue the franchise seller if violations of the California disclosure law have occurred, including the right to sue for rescission of the franchise agreement. A franchise seller is broadly defined as anyone selling a franchise that is not directly working for the franchisor of the franchise they are selling. These are commonly referred to as franchise brokers or franchise consultants that often represent many franchise brands. While there are many good franchise brokers and consultants, there are no legal requirements to become one, you simply can state you are one. AAFD supports any legislation that works toward protecting franchisees, in this case prospective franchisees that are making a significant investment, an investment that can carry a significant risk with bad advice.

AAFD joins the International Franchise Association and the Coalition of Franchisee Association in supporting this legislation and requesting to be a sponsor. Click here for to read the AAFD’s support letter.

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