Help Preserve the Small Business Franchise Model

AB 257 would fundamentally change the contractual terms between independent franchises and the national brand by stripping franchisees of their independence. In doing so, AB 257 would place independent owners at an unfair disadvantage compared to other restaurants, simply because of their affiliation with national brands.
 
Additionally, AB 257 is rife with misconceptions regarding franchises that are not supported by data. The bill makes improper assumptions about operational responsibility and abuses within the franchise model. Every franchisee running a good business supports punishment of bad actors, and there is no evidence that the existing legal and regulatory framework in place is insufficient to bring these bad actors to justice. Proponents of AB 257 lack the necessary evidence to back up these jarring claims against the franchise business model, yet they are the entire premise of AB 257.
 
Finally, AB 257 would empower a small Council of non-representative individuals to exercise powers over businesses that supersedes state law, further burdening our small businesses and blocking our economic recovery. Existing regulations already protect and improve health, safety, and economic well-being of employees, eliminating the need for additional authoritative powers.
 
Complying with onerous standards will lead to business closures, higher prices for consumers, and reduced job opportunities for entry-level workers.