California Legislature Cause for Concern for Franchisors

Posted on September 04, 2019

IFA on top of legislature in California. Read more here: owners-ask-california-legislature-to-amend-ab-5

In a letter to legislators, the brands state, “IFA members are gravely concerned that, if enacted as currently drafted, AB-5 could mean the death of the franchise model in California, with devastating economic consequences,” based on their belief that “the ‘ABC test’ for employee status which would be adopted under AB-5 fails to recognize the unique nature of the franchise model.”

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