On October 11, 2015 California Governor Jerry Brown signed Assembly Bill 525, the California Franchise Relations Act, into law. The bill amends certain portions of the state’s franchise relationship statute, clarifying certain ambiguous provisions which found consensus between uniquely affected parties.
IFA removed its opposition to AB 525 earlier this year after working with other franchise groups to reach an agreement on a bill to send to Gov. Brown’s desk. The bill, which was originally introduced containing problematic components, was later amended to maintain the integrity of existing franchise law and clarifies a number of issues designed to protect the rights of both franchisors and franchisees.
IFA will continue to oppose any frivolous state or federal legislation the needlessly interjects the government into agreements entered into voluntarily by franchisees and franchisors.