California Small Businesses Hurt by Governor̢???s Veto of Bill to Help Franchisees
Statement by David Chase, California Director for Small Business Majority, on California Governor̢???s veto of legislation that would have helped protect owners of small business franchises
We are extremely disappointed in the Governor̢???s decision to veto a bill that would have leveled the playing field for small businesses. This important legislation, SB 610, would have helped protect our state̢???s small business franchise owners from unfair predatory practices by large out-of-state franchisors during contact negotiations.
Current laws that govern the franchise relationship include the basic framework for franchise agreements. Many of these contracts, as well as the legal framework governing them, are written by and typically for the benefit of the franchisors, many of which are large, out-of-state corporations. What̢???s more, few provisions in these contracts or in the laws that govern them protect franchisees from unscrupulous and overreaching franchisors. This bill would have provided franchisees more control over their companies and shielded them against one-sided and nonnegotiable franchise agreements.
California̢???s small business owners account for nearly 99 percent of all businesses in the state and supply millions of Californians with jobs. SB 610 would have ensured entrepreneurs were provided with the tools needed to succeed in business and grow our economy. We are disappointed in the governor̢???s decision to veto a bill that would have better supported our state̢???s small business owners.
<p><strong>About Small Business Majority</strong><br />
Small Business Majority is a national small business advocacy organization, founded and run by small business owners to focus on solving the biggest problems facing America's 28 million small businesses today. Since 2005, we have actively engaged small business owners and policymakers in support of public policy solutions, and have delivered information and resources to entrepreneurs that promote small business growth and drive a strong, sustainable economy. We are a team of more than 30 working from our 11 offices in Washington, D.C. and 9 states, with a network of more than 45,000 small business owners and more than 2,000 business organizations, along with a formal strategic partnership program of more than 125 business organizations, enabling us to reach more than 500,000 entrepreneurs. Our extensive scientific polling, focus groups and economic research help us educate and inform policymakers, the media and other stakeholders about issues including taxes, healthcare, access to capital, entrepreneurship, workforce development, clean energy and immigration. Learn more about us on our website and follow us on <a href="https://twitter.com/SBM_Media" target="_blank">Twitter</a>, <a href="https://www.facebook.com/SmallBusinessMajority" target="_blank">Facebook</a> and <a href="https://instagram.com/smlbizmajority/" target="_blank">Instagram</a>.</p>