Coalition of Franchisee Associations

April 1, 2023

Franchise Times on California Style Franchise Legislation

“Don’t expect business to be the place you solve societal problems,” he said. “It’s not that businesses won’t be part of the solution. It’s that you can’t do it on the backs of business alone.”

Attorneys eye "Californication" bills


Anonymous said...

NOT one Franchisor has decided to not expand in California. NOT ONE! Its a scare tactic by the pro franchisor IFA to decieve and mislead the public.

Richard Adams said...

That's true but it's a threat that the IFA has been using for several decades. To the best of my knowledge, no franchisee-friendly legislation has been in force long enough to test the franchisor as to whether they'd actually cut back on expansion.
But it's not about impressing the public, it's about scaring the hell out of the franchisees so they'll get behind the IFA's efforts to kill the legislation.
Imagine paying a premium for a territory or the like and then having your franchisor shut down expansion.
As for larger, more mature brands, like McDonald's - McDonald's can claim they won't expand in California but that's a no-brainer since there's little room for new locations in the Golden State. McDonald's considers the rewrite of a franchise as a new franchise so they can just decline to issue a new franchise for those locations that come to the end of their term. That's some serious stuff for a franchisee who's built up equity in an ongoing business and suddenly that business is no longer ongoing.

Anonymous said...

the IFA is not a franchisees friend.

Anonymous said...

IFA just added 3 large multi-unit franchisees to its board, and two of them are also attorneys.
Lets see if the IFA actually listens to what they say.

Anonymous said...

McDonald’s recent legislative webcast was the worst veiled threat I’ve ever heard. There were so many things wrong with it. Here’s my top three and they all are because our US president has zero emotional intelligence.

1) roi numbers stated were not accurate
2) risk/reward statements while true, we’re poorly articulated and didn’t understand its audience
3) don’t tell me. Or anyone how to think or vote.

Trying to scare me into aligning with McDonald’s corporate via risk and reward and saying we/I need to support certain legislation is absolutely bullshit. I don’t trust our government. And I don’t trust McDonald’s SLT. Unfortunately I’m trying to figure out who is the least evil. And McDonald’s SLT seems to be the worst at this point.

Anonymous said...

One of the new IFA board members is one of the proponents of that California franchise legislation. Weird, but true.
Lets see if IFA can change its tune to help franchisees.