FOR IMMEDIATE RELEASE
Contact:
Matthew Haller, 202-662-0770
Jenna Weisbord, 202-662-0766
mhaller@franchise.org
jweisbord@franchise.org
@franchising411
IFA Disappointed in Gov. Brown Veto of Pro-Franchising Legislation
WASHINGTON, Sept. 23—International Franchise Association, the world’s largest organization representing franchise owners, issued the statement below following the veto from California Gov. Brown of Assembly Bills 1782 & 2637, legislation that would have promoted franchise small business growth in California including nearly 76,000 franchise businesses which support 728,000 jobs in the state.
“It is disappointing Gov. Brown has chosen to reject these bipartisan supported bills, both having passed the legislature unanimously, rather than promote franchise small business growth in California,” said IFA Vice President, State Government Relations, Public Policy & Tax Counsel Dean Heyl, CFE. “Given the unanimous bipartisan support for this bill in the legislature, his veto of this pro-business legislation sends a signal to franchises and other small businesses that California is not open for business.”
AB 2637 would have simplified the process by which prospective franchisees and franchisors negotiate with each other, thereby promoting small business growth in California. Current California law has a chilling effect on negotiations between prospective franchisees and franchisors. Passage of AB 1782 would have put California in a better position to retain and attract trade shows, while also leading to greater exposure of entrepreneurial opportunities to California residents. For years the West Coast Franchise Expo was hosted in California, but has now moved to Denver, Colorado.
“We are interested to see and understand the Governor’s reasoning to veto legislation that was unanimously passed by the bipartisan legislature and supported by California franchisees and franchisors,” stated Heyl.
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About the International Franchise Association
Celebrating 56 years of excellence, education and advocacy, the International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law, technology and business development.
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