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Log In / Register | Nov 22, 2014

Arguments For and Against California's Franchising Abuse Reform Bill

California franchisee attorney Peter Lagarias testifies of the need for AB 2305 to curb franchising abuse
Attorney Lagarias testifies on the need to curb California franchising abuse

SACRAMENTO — Below is an audio recording that Blue MauMau made of the arguments made on April 24 in front of California's Business, Professions and Consumer Protections Committee to ask lawmakers to vote for bill 2305.  California attorney Peter Lagarias concludes the argument after many witnesses ask lawmakers to vote for the bill. Lagarias explains the legal reasons on why decades old franchise relationship laws CFIL and CFRA need to be updated to prevent modern franchising abuse.

Committee chair Mary Hayashi asks a few questions. Assembly member Jared Huffman (D-San Rafael) answers to say how high standards of consumer protection can be upheld in a brand if franchisors can not easily terminate franchisees. "You look like you want to say something," says Hayashi to Dennis Wieczorek, partner in the Chicago office of DLA Piper and who represents the International Franchise Association. He argues why franchising reform and this bill is a bad idea.

These are the last five minutes of the hearing on Assembly Bill 2305, which did not have enough votes to pass. The reform bill received four votes, three against, and two abstentions. Chair Mary Hayashi (D-Hayward) voted against the passage of the bill. Assemblymember Curt Hagman (R-Chino Hills) who had asked earlier about preserving consumer standards, abstained.

Click on the arrow below to hear the 5 minute audio stream or download the mp3 Podcast file. Apple products such as the iPad or iPhone, including Safari browser, will not display these audio stream. Apple users will need to download the audio file (mp3, 2.4MB).

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