Statement by David Chase, the California director for Small Business Majority, responded to the California Governor’s veto of legislation that would have helped protect owners of small business franchises:
“We are extremely disappointed in the Governor’s decision to veto a bill that would have leveled the playing field for small businesses. This important legislation, SB 610, would have helped protect our state’s small business franchise owners from unfair predatory practices by large out-of-state franchisors during contact negotiations.
“Current laws that govern the franchise relationship include the basic framework for franchise agreements. Many of these contracts, as well as the legal framework governing them, are written by and typically for the benefit of the franchisors, many of which are large, out-of-state corporations. What’s more, few provisions in these contracts or in the laws that govern them protect franchisees from unscrupulous and overreaching franchisors. This bill would have provided franchisees more control over their companies and shielded them against one-sided and nonnegotiable franchise agreements.
“California’s small business owners account for nearly 99% of all businesses in the state and supply millions of Californians with jobs. SB 610 would have ensured entrepreneurs were provided with the tools needed to succeed in business and grow our economy. We are disappointed in the governor’s decision to veto a bill that would have better supported our state’s small business owners.”