IFA: FAST Act Passage is Another Step Backwards for California Restaurants

January 31, 2022

AB 257 would effectively end franchise business model in California, bill has now passed California Assembly, heads to Senate for consideration

WASHINGTON, Jan. 31, 2022 – The International Franchise Association (IFA) today said passage of AB 257 (Holden), or the FAST Recovery Act, in the California State Assembly would be “disastrous” to California restaurants and franchises in the state. IFA urges the Senate to consider the bill’s harmful ramifications before it is heard this spring.

“AB 257 is one of the most damaging pieces of legislation to ever impact the franchise business model. It will have disastrous impacts to the thousands of franchise restaurants across the state and effectively dismantle the business model,” said Jeff Hanscom, VP of State and Local Government Affairs for the International Franchise Association. “Franchising provides unparalleled opportunities for entrepreneurs in California, and better wages, hours, benefits for their workers, and this misguided proposal threatens thousands of California entrepreneurs and workers. IFA will continue to fight to protect franchising and the entrepreneurs, workers, and communities it supports, and we urge the California Senate to consider the harmful effects that this bill would have before it comes up for debate.”

More information on IFA’s concerns about the legislation are available here.

For the latest research on the value and benefits of franchising, visit IFA’s Open for Opportunity website, here.