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Log In / Register | Dec 19, 2014

AAFD Supports California's SB 610 Good Faith in Franchising Bill

The American Association of Franchisees and Dealers (AAFD) is pleased to co-sponsor Senate Bill SB610, and I am writing to voice my support of legislation for balanced franchise relationships in California.

Modern franchise relationships are most always governed by one-sided 'take it or leave it' adhesion contracts that elicit substantial monetary investment from franchise owners, but severely limit a franchisees rights in the franchise relationship. Creating a statutory affirmative duty of good faith in franchise relationships will inhibit the enforcement of one-sided franchise agreements in an abusive manner. Long term, the best opportunity to create a level playing field in franchise relationships is too encourage effective franchisee associations with sufficient leverage to negotiate franchise agreements and relationships that respect the legitimate interests of both franchisors and franchisees. The two prongs of Senate Bill 610, and the included remedies for violations, will provide significant safeguards against abuse in franchise relationships.

We are pleased SB 610 passed the California Senate in late May and by the Assembly Judiciary Committee on June 18, 2013 by a 6-2 vote. The bill comes to hearing before your committee on July 2. We look forward to swift approval by the State Assembly. This important legislation will enhance the ability of franchisee associations to protect thousands of California small businesses engaged in franchising.

The American Association of Franchisees and Dealers is a national non-profit trade association, based in California, that is dedicated to fair franchising practices and to the promotion of effective franchisee associations. I have been pleased to serve as Chair of the AAFD since 1992. I have practiced franchise law in California for 40 years, and am pleased to be a Certified Franchise Law Specialist and to serve on the Franchise Law Committee of the State Bar.

Very truly yours,

Robert L. Purvin, Jr.
Chairman and CEO

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