Passage of Fair Franchising Bill Good News for Small Business Franchises
Statement by David Chase, California Director for Small Business Majority, on the California Assembly̢???s passage of legislation today that would help protect owners of small business franchises
California small business owners received some welcome news today with the state Assembly̢???s passage of SB 610, legislation that will help protect small franchise owners from unfair predatory practices by large franchisors. The bill would make it harder for franchisors to unfairly terminate contracts with the small business owners who run their franchises, and help protect the equity of franchisees by allowing them to sell their license if they choose.
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, most 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.
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 takes reasonable steps to ensure entrepreneurs are provided with the tools to succeed in business and continue to help grow our economy. We hope the governor will quickly sign this bill into law to better protect our state̢???s franchise 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>