A bill which aims to amend the California Franchise Investment Law to make negotiations between franchisees and franchisors more efficient passed unanimously in the Senate Judiciary Committee today.
“AB 2637 will help empower small business franchise owners by streamlining the negotiation process when dealing with their multi-national corporate partner,” said Scott Wilk, R-Santa Clarita. “This measure will foster job growth by giving entrepreneurs the needed tools in addressing concerns so they have greater confidence in risking their capital within California. This bill levels the playing field with California franchise owners versus franchise owners in other states.”
AB 2637 will simplify and expedite the sales of franchises in instances where all parties are in agreement on the terms being negotiated. Doing so will increase efficiency in transactions, thereby helping improve operations of franchises within California.
The measure will be heard next in the Senate Appropriations committee.
The 38th Assembly District encompasses Simi Valley, the northwestern section of the San Fernando Valley and most of the Santa Clarita Valley.