Franchise owners in California continue to want new laws that would protect their business and give them more freedom.
Their support for new franchise laws in California has been highlighted in a couple new bills submitted to the California legislature.
Franchise owners had a role in writing some of the proposed bills. One of the bills, the California Small Business Investment Protection Act, would allow franchise owners to transfer their businesses with fewer restrictions, renew their franchisors licenses, offer protection from terminations and assemble their own trade groups with fewer restrictions.
Many franchise owners in California support the bill because they want to help the franchise industry continue to invest and create jobs in the state. However, not everyone in the franchise industry supports the proposed bill.
The International Franchise Association said they are concerned with the bill, mainly because they are afraid that if California passes this legislature, the rest of the country will soon follow and it will impact all franchise industries in the country. The association said they are worried that the proposed bills could have unintended consequences on the franchising industry and reduce the growth of industry in the future.
Another bill that would change franchise laws in California has been proposed. Senate Bill 538 would update one of the state's franchise laws that have not been updated in several years. This bill would change the requirement for investors to receive disclosure documents from 10 days to 14 days before a franchise is purchased.
California franchise owners and franchisees continue to support these proposed bills and hope that they will be passed this year. Supporters of the laws feel that it will help update the outdated laws in California as well as give the franchise industry more protection and freedom while running their franchise.
Source: Blue Mau Mau, "Franchise Protection Bills Introduced in California," Don Sniegowski, March 2, 2013