California Gov Signs Fair Franchise Bill

Notwithstanding issues we may have with many of the political positions Governor Gavin Newsom takes on a host of issues affecting small businesses as outlined above, he delivered on the positive side for franchisees late yesterday when he signed AB 676 into law. That legislation is a franchisee equity piece that clarifies the intent of…

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Franchise Fractures

Tensions have been building of late between McDonald’s and many of its franchisees over proposed new standards for US contract renewals. Word of the new franchise standards began circulating back in May but the company has been plowing ahead with the revisions. Saying that the right to operate one of its restaurants is “earned, not…

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GAO Franchising Study

A few weeks ago, we advised you of the Government Accountability Office (GAO) initiating discussion and study groups with the goal of looking more closely at franchising laws in general as well as the FTC Franchise Rule in particular. Toward that end, the GAO asked us to extend an invitation to our franchisee members to…

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FTC Nominee Bedoya Advances

On the flip side of the nomination coin, also on Wednesday of this week, Senate Democrats voted 51-50 to advance the nomination of Alvaro Bedoya to serve as a Member of the Federal Trade Commission (FTC). The Bedoya nomination was tied up in a deadlocked (14-14) Senate Commerce Committee and needed to be advanced by…

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CFA Meets with FTC Nominee

Although his nomination is not yet a fait accompli, Federal Trade Commission nominee Alvaro Bedoya is wasting no time getting up to speed on the FTC Franchise Rule and all its implications. Aside from “studying up” on the rule as he described his efforts, he also this week met with the Coalition of Franchisee Associations…

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Congressional Hearing on Franchising

The US Senate Committee on Small Business & Entrepreneurship will host a hearing on March 16 at 2:30 PM specifically focused on the franchising industry and some of the problems that have beset franchise owners over the years. The hearing, entitled Small Business Franchising: An Overview of the Industry, SBA’s Role and Legislative Proposals, will…

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FTC Stepping to the Plate

With a renewed focus on bad actors within the franchise industry, the US Federal Trade Commission (FTC) took a significant step this week when the Department of Justice (DOJ) filed suit against franchisor Burgerim alleging in a four-count lawsuit that the company violated Section 5 of the FTC with false and misleading representations to potential…

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Assembly Advances FAST Act

On Monday of this week, the California Assembly passed AB 257, the so-called FAST Act and sent it to the Senate for its approval. Needing 41 votes to pass the Assembly where it died last session, the Fast-Food Accountability and Standards Recovery Act, prevailed on a 41-21 vote on the last day before such a “holdover bill”…

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FTC Adds Fraud Page to Website

When Senator Catherine Cortez Masto (D-NV) became aware of the lopsided playing field with which franchisees have had to contend, she set about seeking solutions. She subsequently produced an 87-page report on franchising, filed legislation to mandate more transparency and pushed for more diligent enforcement by the Federal Trade Commission (FTC). Well, we are now…

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CFA Readying Lobby Day and in the News

We’re just a little better than one month away from the Coalition of Franchisee Associations Lobby Day in Washington, DC., and if you haven’t yet done so, please sign up to attend and join your franchisee colleagues to speak with you representatives in Congress about the issues that most concern you and your business. On…

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