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California Capitol Building

Calif. State Assembly approves legislation to protect franchisees

“Franchise Bill of Rights” would prevent franchisors from terminating contracts without good reason

The California State Assembly approved Thursday legislation designed to protect franchisees from predatory practices by franchisors in a bipartisan vote.

Known as the “Franchise Bill of Rights,” or Assembly Bill 525, the legislation was approved by a vote of 54 to 10. The measure will now proceed to the state Senate.

AB 525 is designed to establish protections that would prevent franchisors from terminating contracts with franchise operators without good reason. The le

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