Dear Dunkin’ Donuts Franchise Owners,
My, my. Franchisees and their independent associations have been busy this year! There has been a wave of state fair franchising bills that are popping up, catching the industry by surprise. What’s gotten into you guys?
It started with Rhode Island three years ago. That was supported by franchisee groups Dunkin’ Donuts Independent Franchise Owners and the Coalition of Franchisee Associations. DDIFO last year helped introduce a bill in Massachusetts. That is up for vote this summer. To the industry’s surprise, the Massachusetts bill was copied over to Vermont by a franchisee. And now California has introduced assembly bill 2305, the Level Playing Field for Small Businesses Act. The California bill is arguably the most advanced franchise relationship bill in the country. The author of the bill, California Assemblymember Jared Huffman says of it: “This is that once-in-a-generation moment for them (franchise owners) to make a difference that will matter to them, their families and their businesses.” In an interview with him, he describes how franchisors are already lining up to defeat the bill. Huffman said he needs California franchise owners to contact their Assemblymember to ask for their support of this bill.
Here’s Assemblymember Huffman’s interview with Blue MauMau about the bill.
The bill has been supported very early on from franchisee groups such as the Coalition of Franchisee Associations, the Asian American Hotel Owners Association, a powerful lobbyist in their own right, the American Franchisee Association, and the American Association of Franchisees and Dealers. I must admit that it’s unusual to hear independent small business owners and their diverse associations sing in harmony in support of this bill.
It is no surprise that franchisors aren’t happy about post-sale franchise relationship bills. These laws aim to add protection for the renewal of a franchise contract, a reasonable period for franchisees to cure infractions before being terminated by a franchisor, help to franchisees in organizing independent franchisee associations and protection from a franchisor setting up a separate shop next door to yours. The International Franchise Association, who has been lobbying for over 50 years, is strongly opposed to such efforts.
In the interview, Huffman says he is up against powerful forces and needs the help of franchisees to get the bill passed.
Keep watching Blue MauMau for additional news on these state bills.
Editor, +1 (270) 321-1268
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