FOR IMMEDIATE RELEASE
IFA STATEMENT ON CALIFORNIA’S ASSEMBLY BILL 5
(WASHINGTON, D.C., JULY 10) – The International Franchise Association (IFA) today released the following statement on the California State Senate’s Labor and Public Employment Committee hearing on Assembly Bill 5 (AB5), which would codify the “ABC” standard for determining business relationships:
“It’s not an exaggeration to say that AB5 would forever change the California economy if it isn’t amended to exempt the franchise business model. California’s 75,000 franchise businesses and their nearly 730,000 employees would be subject to new laws that would undermine their very ability to operate,” said IFA Senior Vice President of Government Relations and Public Affairs Matt Haller. “As the California Assembly considers this bill, it should also consider the uniquely harmful effects it would have on California’s locally-owned franchise businesses. IFA looks forward to working with legislators to ensure that California franchises can continue to grow and contribute to their communities.”
AB5 would lead independent franchise owners to cede control of their businesses to their parent brands, effectively turning locally-owned and operated franchise businesses into part of larger corporate entity.
About the International Franchise Association
Celebrating 58 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.