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Log In / Register | Dec 20, 2014

California’s Governor Brown Vetoes Franchisee Bill

SACRAMENTO – Governor Jerry Brown announced Monday afternoon that he has vetoed Senate Bill 610. The bill updated the California Franchise Relations Act so that the implied covenant of good faith and fair dealing as stipulated in California law could not be waived in a franchise contract and a franchise could not be frivolously terminated unless there was a "substantial and material breach" of the franchise contract.

Buying a Franchise is Riskier than Ever

risk, high wire walk in owning a franchise

Critics, including this journal, say that buying a franchise is riskier than ever, that the reality of the franchise system is often purposefully and skillfully hidden and that it is easier to fail nowadays once you plunge in.

California Franchisees Ask for a Better Franchise Law

 

California franchisees are speaking up in online and radio commercials, asking for support of Senate Bill 610, which affords better protection to franchisees. The bill will soon be brought up for a vote in California's state assembly.

BrightStar Forces Franchisee into Arbitration

CHICAGO – As BrightStar Healthcare readies itself for at least two jury trials and arbitration with franchisees, the home healthcare franchisor is also preparing for battle with a California franchise owner.

California Franchisee Protection Bill Passes Final Committee

The streets of San Francisco
Franchises throughout California, including those on the streets of San Francisco, could see protection. photo/Thomas Hawk

SACRAMENTO — Despite heavy lobbying from the International Franchise Association against the bill, franchisee-sponsored Senate Bill 610 passed its last committee hearing in the California Assembly this morning.


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Australia Asks: Franchising, a License to Print Money?

McDonald's has licensed franchises in Australia. photo by BMMThe Australian Broadcasting Corporation radio show Rear Vision interviews San Diego-based Robert Purvin, author of The Franchise Fraud: How to Protect Yourself Before and After You Invest, and Sydney-based Jenny Buchan, author of Franchisees as Consumers.

Franchising Myth Six: Many Franchises Means Critical Mass of Market Penetration

Too many prospective franchise buyers I know assume that a franchise is successful because it is “big enough” to sell franchises or because it already has hundreds of franchises in operation.

NFIB Announces Support of California’s Fair Franchising Bill

SACRAMENTO—The National Federation of Independent Business announced on Friday that it is supporting California's Senate Bill 610, a fair franchising amendment to California's existing Franchise Relations Act.

Franchising Myth Four: The Typical Franchisee Gains a Valuable Brand Asset

Let's play a little game. Review Blue MauMau's alphabetized directory of franchises. HERE is the link. Take a few minutes to browse and then ask yourself how many companies you recognize. When you're done, come back to this article.

Are Franchisees Well Informed? Revisiting Franchise Relationship Laws

Are franchise owners really well informed? Law professors Robert Emerson and Uri Benoliel say no and that there is a powerful case for the need to protect franchise owners from franchisor opportunism.