IFA Statement Regarding Senate Passage of California Senate Bill 610

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FOR IMMEDIATE RELEASE


Contact:

Jenna Weisbord, 310-995-0839

jweisbord@franchise.org


IFA STATEMENT REGARDING SENATE PASSAGE OF CALIFORNIA SENATE BILL 610


WASHINGOTN, Aug. 21, 2014 —International Franchise Association President & CEO Steve Caldeira, CFE, released the following statement after the California Senate passed The Franchise Act (Senate Bill 610) today.


“We are truly disappointed that the Senate passed such a burdensome bill for the franchise industry in California and it is now crystal clear that there has been a blatant misinformation campaign against our industry led by organized labor, and in particular, the Service Employees International Union (SEIU). SB 610 has been, and continues to be, a solution in search of a problem that does not exist. The ambiguity and uncertainty created by SB 610 will prop-up under-performing franchisees—to the detriment of other, well-performing franchisees, who are maintaining operational standards, providing critically-important consistency to the consumer, and protecting the brand’s hard-earned reputation. This bill will also reduce equity for the hard-working franchisees that create much-needed jobs in the state, and will result in countless frivolous lawsuits that will only add costs to consumers and ultimately less investment in the small business franchise model, which is an increasingly important part of the California economy.


“IFA’s broad-based, pro-business coalition will continue to vigorously fight to defeat this bill. We strongly and respectfully urge Governor Jerry Brown to veto this onerous and unnecessary bill and make the right decision for the California economy and franchise small businesses. Existing California franchise contract laws and regulations are robust, predictable and have proven successful for the franchise industry. If signed into law, SB 610 would without question shift franchise brands to more company-owned stores, thereby taking away ownership opportunities for both existing and prospective entrepreneurs in the state and would severely hinder franchise small business growth throughout California.”


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About the International Franchise Association

The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.


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Phone: +1 202/628-8000 Fax: +1 202/628-0812 www.franchise.org

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