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Politics, events and news that affect franchisee rights

California Franchisees: Urge Governor Brown to Sign Pro-Franchisee Legislation into Law!

Last week, the California State Senate voted unanimously to pass CA AB525, a bill which amends the California Fair Franchise Act and grants franchisees across the state more freedom in running their business.  Several days later, the California State Assembly voted 79-0 in favor of the bill as well.

Two Franchisee Protection Bills Introduced in U.S. Congress!

Capitol Hill, Washington D.C. by wbeem on Flickr
Capitol Hill. Photo by wbeem

WASHINGTON—This morning two bills to assist America's franchise owners were introduced in Congress. Rep. Keith Ellison (D-MN) authored the Fair Franchise Act of 2015, a bill to protect franchisees from predatory franchising practices after a franchise is bought, and the Small Business Administration (SBA) Franchise Loan Transparency Act, which would help buyers to obtain more accurate financial information prior to investing in a franchise.

Leading Franchisors Can Terminate Franchises at Will

Franchisors of fourteen leading brands all give themselves the ability to terminate franchisees virtually at will, according to a Service Employees International Union analysis. This power comes from four provisions, common to the franchise agreements of major franchisors across several industries, from McDonald’s to Jazzercise, from 7-Eleven to Holiday Inn.

CFA and IFA Work Together to Advance Fair Franchising Legislation

The Coalition of Franchisee Associations (CFA) is proud to announce that due to its collaborative efforts with the International Franchise Association (IFA), California AB525 passed unanimously out of the California Senate Judiciary Committee on Monday night.

Capital Spending Requirements Put Franchisees in a Tight Spot

McDonald's has instituted a turnaround plan involving burger customization that may impose up to $125,000 in new investment costs on already struggling franchisees, according to the Wall Street Journal. The $125,000 price tag for McDonald’s burger customization program follows renovations undertaken by about half of McDonald's restaurants in the past decade, which cost participating franchisees upwards of $650,000.

CFA Urges Franchisees to Oppose the NLRB's Joint Employer Definition

Last week, the U.S. House Labor Appropriations Subcommittee approved its annual spending bill for fiscal year 2016. Included in this bill is a provision that prevents the National Labor Relations Board (NLRB) from enforcing its joint-employer standard, which redefines the franchisor/franchisee relationship and, if not defunded, would destroy the franchise business model.

Washington Adopts Guidelines for Large, Sophisticated Franchisor Exemption

Photo from Washington State Portal, Doing Business in Washington

TUMWATER, Washington – Washington's Franchise Securities Division last week issued new guidelines on what is acceptable for large, experienced franchisors to be exempt from having to register their franchise system prior to selling franchises.

SEIU Petitions FTC to Investigate Franchisors' Predatory Abuse of Franchisees

Man tames commerce, franchisee bridles wild franchisor
Statue in front of Federal Trade Commission of man taming the wild horse of commerce. photo/sniegowski

WASHINGTON, D.C. – The Service Employees International Union yesterday petitioned the Federal Trade Commission, the regulatory body for franchising, to launch an investigation into the $800 billion franchise industry on predatory abuses by franchisors of franchisees.

Zees Face Their Own Problems as McD Workers Press for Higher Minimum Pay

McDonald's Now Hiring. Photo by Blue MauMauWith demonstrations for higher worker wages heating up Wednesday at quick service restaurants across America and the world, attention is falling on the squeezed profit margins and weakened independence of McDonald's franchisees.