State Senate Approves Franchise Bill by Monrovia Representative

AB 525, legislation by Assembly Majority Leader Chris Holden, who represents Monrovia, will raise the standard that must be met in order for a corporation to terminate a franchisee, set-up a framework that allows franchisees to sell or transfer their businesses, will compensate them for capital improvements they are required to make, and require franchisors to pay damages for any breaches of the franchise contract. AB 525 now goes back to the Assembly for approval of brief amendments before being sent to Governor Brown for signature.

- Brad Haugaard