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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The AAFD is a national non-profit trade association representing the rights and interests of franchisees and independent dealers throughout the United States. The AAFD’s mission is to achieve Total Quality Franchising We do this by promoting fair and equitable franchising and dealer practices and empowering effective independent franchise associations.  We also provide members with programsservices and products which enhance their individual businesses and careers.  

AAFD Director of Public Affairs and Advocacy at 

Keith is the AAFD preeminent voice for political action in support of franchisee rights at both the Federal and State level. Keith has been an active leader and voice for franchisee causes over the past twenty plus years, with a growing track record of bringing franchisee friendly legislation introduced and adopted throughout the USA. Keith is also a multi-unit Subway franchisee, and understands the challenges and opportunities that come with being in business for oneself. He is passionate about protecting the interests of franchisee business owners, and will work tirelessly to ensure that they are treated fairly under the law.

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