Level Playing Field for Small Business Act of 2012 California Fair Franchising Act

On Tuesday, April 17th, the California Judiciary Committee approved AB 2305, the California Franchising Level Playing Field for Small Business Act of 2012, via a 6 to 3 vote. It now passes to the California Assembly Business, Professions and Consumer Protections Committee for a hearing on April 24. After its approval, it will then later go to the full California Assembly and later, to the State Senate for approval, and on to Gov. Jerry Brown for his approval.

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Assemblyman Huffman on California’s Fair Franchising Bill

Assemblyman Jared Huffman (D-San Rafael) speaks with Don Sniegowski from Blue MauMau about the fair franchising bill he introduced a month ago to the state of California, AB 2305, the Level Playing Field for Small Businesses Act. The bill was introduced to various committees of the assembly on Tuesday.

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California, Vermont and Massachusetts Introduce Fair Franchising Bills

It started with Rhode Island three years ago. That was supported by franchisee groups Dunkin’ Donuts Independent Franchise Owners and the Coalition of Franchise 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.

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Department of Labor Restricts Employer-Directed Tip Distribution Even When Affected Employees Are Paid Above the Minimum Wage

The United States Department of Labor, Wage and Hour Division issued important new directives to its field investigators.  These directives will impact employers who employ individuals who pool gratuities.  The Wage and Hour Division’s Field Assistance Bulletin No. 2012-2 rejects the ruling of a Federal appeals court and advises field staff that the department’s 2011…

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Tim Horton’s Ruling may be a Cautionary Tale for Dunkin’ Donuts Franchise Owners

A Canadian court ruling involving Tim Horton’s may be cautionary tale for Dunkin’ Donuts franchisees. The case was brought by a group of Tim Horton’s franchise owners after they were forced to sell items at below cost and switch to more expensive pre-baked donuts from a supplier affiliated with the franchisor. Franchise attorney Eric H. Karp of the Boston firm Witmer, Karp, Warner & Ryan, LLP, closely followed this case and kept DDIFO apprised of its developments. After the decision was announced, DDIFO commissioned him to write a comprehensive summary of this ruling.

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Coffee Servers Should Be Eligible to Receive Tips

In Massachusetts, one regulation is not only harming small businesses, it’s also taking money out of the pockets of employees in virtually every city and town. Massachusetts’ tip-pooling law is preventing people who work behind the counter at Dunkin’ Donuts and other quick service restaurants from receiving tips. Leaving extra change—or an occasional dollar bill—in a tip cup is a time-honored tradition for Bay State coffee drinkers.

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Independent Franchisee Associations Grow

Stan Turkel posts at BlueMauMau that Experts estimate that there are 300 to 400 independent organized groups of franchisees, which are increasing. Julie Bennett of Franchise Times reports in the September issue that they range from “giants like the North American Association of Subway Franchisees serving almost 24,000 domestic units and run by a professional staff in Fairfield, Connecticut, to Expetec… an association of 24 franchisees.”

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The Fight for ‘Fairness in Franchising’

Jason Daley writes at Entrepreneur Magazine: Imagine owning a small business for 20 years, pouring all your time, money and sweat into achieving a decent cash flow and a little equity. Then imagine getting a contract in the mail stipulating that if you want to continue doing business, you must replace thousands of dollars of perfectly good equipment, adjust suppliers or prices or make a dozen other changes that could destroy your bottom line. And if you don’t sign, you more or less forfeit your life’s work.

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Dunkin’ Donuts Cracks Down on Franchisees

Eric Convey, the Managing Editor of the Boston Business Journal, reports that Dunkin’ Donuts .. Wednesday sued a handful of franchisees in the Hudson Valley of New York and Western Massachusetts, alleging they violated requirements that they remodel their restaurants according to the company’s guidelines.

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