AB 1228 passed the Assembly Floor last month and is scheduled to be heard in the California Senate Judiciary Committee on Tuesday, July 11.
, authored by Assemblyman Chris Holden, D-Pasadena, is designed to “make it easier for franchisees to pay, support and protect their employees.” Also known as the Fast Food Franchisor Responsibility Act, it would require fast-food corporations to share in the legal responsibility and liability for a franchise owner’s violations.
“Many franchisees find themselves in a chokehold by franchisor terms, forcing them to choose between profitability and complying with employee protection regulations,” Holden said in a statement. Opponents say AB 1228 would prompt fast-food corporations to “tighten the reins” on franchise owners, impacting their ability to make their own business decisions.No on AB 1228Fairbanks said franchise owners who bought equipment, hired employees, instituted training and set wages, benefits and hours would effectively be reduced to middle management.
“We also have nearly 1,000 individual franchisees who have signed up to oppose AB 1228, versus about 200 who opposed AB 257,” she said.Last month,
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