California’s FAST Act Will Harm Local Restaurant Businesses

International Franchise Association Urges No Vote on AB 257 (Holden)

(WASHINGTON, Jan. 21, 2022) – International Franchise Association Vice President for State and Local Government Relations Jeff Hanscom today released the following statement in response to California’s AB 257 (Holden), which is expected to appear before the State Assembly next week:

“The revival of the FAST Recovery Act is a continued attempt to end the franchise model as we know it and harm thousands of local restaurant business owners in California and the jobs they support. The legislation will establish an unaccountable, unelected council of political appointees to oversee workplace policy, independent of the legislature and outside of existing labor law. In addition, by statue, it will eliminate the franchise model in California, turning hardworking local franchise business owners into middle managers, decimating equity they have spent their livelihoods building. Recent amendments purport to allow for legislative oversight but are instead window dressing and do not eliminate the serious legal and policy issues that doomed AB 257 last session.

“The franchise model provides opportunities to countless entrepreneurs in California, especially women, immigrants, members of the LGBTQ+ community, and people of color, who own 60% of California restaurants. Local franchisees provide better wages, hours, benefits for their workers, and are pillars of the communities in which they operate. As the economy continues to recover, we should be striving for policies to lift up this industry, not make operating their business even more difficult. We urge California lawmakers to reject AB 257 and protect California small businesses.”

About the International Franchise Association:

Celebrating 60 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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