The California Small Business Investment Protection Act (AB 525) will help small-business franchise owners stay in business and contribute to our state’s economy. Without it, the owners of over 82,000 enterprises in California could lose their livelihoods if they break one of countless rules contained in thousands of pages of corporate manuals.
Big government did not create these rules. Rather, it’s large franchisor corporations that impose myriad minute operating requirements on their franchisees. The Small Business Investment Protection Act will prevent franchisors from unfairly putting franchisees out of business and protect franchisees’ ability to sell their business or pass it on to family members.
In the past, opponents of franchisee rights have tried to use scare tactics to derail the debate. Here are the facts: