North San Diego Business Chamber Expresses Opposition To AB 1228 Fast-Food Franchisor Responsibility
Contact: Chris Thorne
Phone: 858-217-8970 chris@sdbusinesschamber.com www.sdbusinesschamber.com
North San Diego Business Chamber Opposes AB 1228 Fast-Food Franchisor Responsibility Act
On July 6th, the North San Diego Business Chamber released the attached letter of OPPOSITION to AB 1228 the Fast-Food Franchisor Responsibility Act on behalf of the more than 800 large, small, and independent businesses which are Chamber members across San Diego County and beyond.
"Today, the North San Diego Business Chamber stands united in strong opposition to the proposed legislation," CEO Chris Thorne said regarding today's opposition. "Assembly Bill 1228 jeopardizes not only the fast-food industry, but also poses potential risk to other franchise model businesses. We firmly believe in protecting worker’ rights while safeguarding the entrepreneurial spirit that drives our economy. We urge policymakers to reconsider this bill and work collaboratively with stakeholders to find balanced solutions that promote compliance without stifling business growth and job creation.”
I am writing to express my strong opposition, on behalf of the North San Diego Business Chamber and our 800 member businesses in the San Diego region, to Assembly Bill No. 1228, the Fast-Food Franchisor Responsibility Act. We firmly believe that this proposed legislation will have detrimental effects not only on the fast-food industry but also on other franchise model businesses, thereby impacting the overall economy of our region.
While we recognize the underlying objective of addressing employment law violations within the fastfood industry, we are deeply concerned about the broader implications of AB 1228 on the franchise business model as a whole. The provisions of this bill, which require fast-food restaurant franchisors to share civil legal responsibility and liability for franchisee violations of specific laws and orders, may have unintended consequences that extend beyond the realm of food service or fast-food franchises.
The franchise model has been a proven pathway for entrepreneurship and economic growth, allowing individuals to own and operate their own businesses under established brands. Franchisors provide essential support, training, and standardized systems to their franchisees, facilitating their success while contributing to job creation and economic development in local communities.
However, by imposing joint liability on franchisors for the actions of franchisees, AB 1228 disregards the unique dynamics of the franchisor-franchisee relationship. Franchisors already play a vital role in establishing operating standards and ensuring compliance with legal requirements. Nevertheless, holding franchisors fully liable for violations committed by individual franchisees undermines the principles of fairness and accountability.
Moreover, if this legislation is enacted, it could have a chilling effect on the growth and expansion of franchise businesses across various industries beyond fast-food. The potential for joint liability may discourage franchisors from extending their networks or entering new markets, limiting job opportunities, stifling entrepreneurship, and impeding economic progress. The consequences could be particularly severe for small businesses that rely on the franchise model to enter the market and thrive.
It is essential to consider the unintended ramifications of AB 1228 on the broader franchise industry. While the fast-food sector is the immediate target, the implications of this legislation may inadvertently harm other franchise model businesses, such as retail, hospitality, healthcare, and various service sectors. By undermining the franchise business model and imposing excessive liability, we risk discouraging franchisors from providing the support and opportunities that have been instrumental in promoting entrepreneurship and economic vitality.
Rather than adopting a one-size-fits-all approach, we encourage a more comprehensive examination of the potential impacts on different franchise industries. A collaborative effort involving franchisors, franchisees, business organizations, and labor advocates would be instrumental in crafting solutions that effectively address employment law compliance while safeguarding the viability and growth of franchise businesses.
In conclusion, we respectfully request that you consider our opposition to Assembly Bill No. 1228. We believe it is crucial to consider the unintended consequences that may extend beyond the fast-food industry and engage in a thoughtful and inclusive discussion with stakeholders to explore alternative approaches that protect workers' rights without jeopardizing the franchise business model and the broader economy.
Thank you for considering our perspective on this matter. We appreciate your commitment to serving our community and would welcome the opportunity to further discuss our concerns. Please do not hesitate to contact me directly at chris@sdbusinesschamber.com or (858) 217-8970.
Respectfully,
Chris Thorne CEO North San Diego Business Chamber
For further information, or for direct engagement related to this topic please contact Chris Thorne, CEO, North San Diego Business Chamber, at chris@sdbusinesschamber.com, (858) 217-8970.
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About North San Diego Business Chamber:
North San Diego Business Chamber is a regional chamber of commerce located in San Diego County, California. We serve as a networking and advocacy organization for businesses in the region, providing resources and support to help them grow and succeed. North San Diego Business Chamber is the only 5-Star US Chamber of Commerce accredited organization in San Diego County and one of only 194 such accredited organizations of more than 7,000 eligible Chambers nationwide. The Chamber supports commerce across San Diego County, representing over 800 businesses and 150,000 employees. We offer a wide range of services and programs to our members, including networking events, business education and training, marketing opportunities, and advocacy on behalf of local businesses. North San Diego Business Chamber also works to promote economic development in the region by supporting local initiatives and working with government and community leaders to attract and retain businesses. For further information about North San Diego Business Chamber, please visit https://sdbusinesschamber.com/
