In his veto message, Brown, noting that the bill would change the franchise termination standard from "good cause" to "substantial and material breach", lamented that the proposed standard was "new and untested".

In his veto message, Brown, noting that the bill would change the franchise termination standard from “good cause” to “substantial and material breach”, lamented that the proposed standard was “new and untested”.

California Governor Jerry Brown waited until the last day to kill the hope of restoring some semblance balance and equity to the franchise relationship in the Golden State, vetoing the California Franchise Relations Act on the 29th of September.  Had he not taken action by the 30th, the bill would have become law without his signature.  It was a very disappointing result for franchisees who worked tirelessly for the last couple of years to move the bill through both branches of the state legislature and get it to the Governor by the end of August.  In his veto message, Brown, noting that the bill would change the franchise termination standard from “good cause” to “substantial and material breach”, lamented that the proposed standard was “new and untested”.  Wouldn’t that describe all new definitions incorporated into state law with new legislation??  The takeaway from this extensive effort in California is that we will see many more states consider legislation to re-establish some balance and equity in the franchise relationship in the coming year and the franchisee community should look to capitalize on the tremendous momentum the California effort fostered.  The battle may have been lost, but the fight for franchisee rights is far from over!