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Calif. Vetos Franchise-Dispute Bill, Upholds the Franchise Model


California Governor Jerry Brown has vetoed a bill intended to give franchisees a stronger position in dealings with corporate franchise systems, ending a legislative battle that fostered surprising alliances between the franchising industry and unions.

The bill sought to prevent franchisors from using minor infractions to force franchisees out of their businesses, as 7-Eleven store owners have alleged in a series of lawsuits. But opponents of the bill said it would make it difficult for franchisors to respond to store owners whose franchises reflect poorly on the brand.

– Read more at Businessweek.

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