The District Court for the District of Southern California has dismissed a lawsuit challenging the validity of California’s AB5 law. The challenge, which was filed by the International Franchise Association (IFA) along with DDIFO, the Asian American Hotel Owners Association (AAHOA) and the Supercuts Franchisee Association (SFA) back in November 2020, centered around California‘s ABC test as applied to the relationship between franchisors and franchisees. We had alleged that the application of the ABC test to a franchise relationship was preempted by the  FTC Franchise Rule as well as the Lanham Act in violation of the Commerce Clause of the U.S. Constitution. Unfortunately, California was successful in convincing the court that all of our plaintiff organizations lacked standing because our members must have suffered an injury in fact rather than hypothetical; that there was a causal connection between that injury and the conduct complained of; and that the injury would be redressed by a favorable decision. Failing to find that we met these criteria, the court dismissed the suit without prejudice.