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Controversial Legislation By State Senator From Santa Barbara Intended To Protect Franchisees Now On Governor’s Desk

Posted on Friday, August 22, 2014 4:10pm

A controversial bill by a state senator from Santa Barbara intended to give small business franchisees new leverage in their dealings with the corporations they are affiliated with has been passed by the state legislature.

Senate Bill 610 was authored by Democratic Senator Hannah-Beth Jackson of Santa Barbara.

Proponents say it will give greater protections to fast food, convenience store, and other franchisees.  They say current laws allow corporations to put local franchisees out of business arbitrarily, sometimes using obscure technicalities.

Opponents contend that the relationship is already regulated, will lead to expensive litigation, and will protect bad franchisees which will negatively impact the brand of the good ones.

The legislation is now on the governor’s desk, awaiting his action.

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