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Is California's 'Good Faith' Franchise Legislation Necessary or Meaningful?

By David L. Cahn
June 26, 2013

On May 28, the California Senate passed S.B. 610, which is an amendment to California's Franchise Relations Act (the “CFRA”). The bill has been introduced in California's General Assembly and was referred to that body's Judiciary Committee on June 10.

This legislation could provide some increased leverage and protections to existing franchisees, but it may come at a cost to franchising as a method of expanding brands and providing opportunities. This bill, if approved by the state's General Assembly and signed by Gov. Jerry Brown, would add the following relevant provisions to the CFRA:

Without limiting the other provisions of this chapter, the following specific rights and prohibitions shall govern the relations between a franchisor, subfranchisor, and franchisee:

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