Friday, June 26, 2015

AB 525 Small Business Investment Protection Act

SB 525 is a bill that protects Franchisees from unfair business practices of Franchisers. It has passed the Senate and will go before the Assembly Business and Professions Committee. Currently there are 83000 franchised establishments in California employing 925700 workers.  Last years bill SB 610 was vetoed by the Governor because of questions the Governor had about the “substantial and Material breach”  in last years bill.If you want a sample letter please let me know.This bill bars franchisers from termination of a franchise- putting them out of business- without a reason. The standard proposed has been tested in numerous states:” failure to substantially comply” with the Franchise agreement. Gives franchisees rights to renew their franchise-to keep their business- if they comply with the franchiser's standards. Protects franchisees ability to monetize their equity and investment in their business before it is terminated or not renewed. Creates a more stable,sustainable ,and balanced relationship, which will allow workers more room to negotiate for improved working conditions. Keep in mind that franchisers will still be allowed to terminate or not renew franchises who violate important rules . Franchisees will merely be protected from losing their businesses for minor violations of thousands of pages of detailed requirements. Small Business California strongly supports this bill and will be looking to get support from the small business community around the state. What are your thoughts? Will you send a letter supporting? If you are a franchisee will you help us . Tell us your stories. Most of the people receiving this email are not impacted by this but we need to stick together to help our fellow small businesses owners.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA  94116


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