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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”.

SB-939 – No Commercial Evictions During COVID-19

The AAFD has just endorsed California Senate Bill SB-939 and thanks CA Senator Scott Wiener for authoring a bill that will provide a much-needed protection to franchise business owners in California by banning evictions of commercial tenants during the course of the Covid19 Pandemic.

Join us in May for our Town Halls

The AAFD has announced the schedule of Town Halls for the month of May:

May 8: Results of the AAFD Franchisor Pandemic Relief Response Survey
May 15: FTC Visits the AAFD Membership
May 29: Covid19 Pandemic Update—Where We are Today!

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.

AAFD Town Hall: Highlighting Renewed Legislative Interest in Franchisee Rights Presented by Keith Miller and Special Guest Senator Cortez Masto

Spurred largely by the significant efforts and leadership of Keith Miller, the AAFD’s Director of Public Affairs and Engagement, and principal of Franchisee Advocacy Consulting, franchisee concerns have gained growing attention at both the Federal and state level. Miller will be leading this week’s AAFD Town Hall which will focus on initiatives on several fronts to provide greater protections for franchise owners throughout the US.  

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.

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