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SACRAMENTO –Earlier this week, Assemblyman Scott Wilk, R-Santa Clarita, presented Assembly Bill 2637, which would amend the California Franchise Investment Law to expedite the negotiation process when both parties are in agreement. The measure received unanimous support in the Assembly Banking & Finance committee.
“AB 2637 will help facilitate the negotiation process between parties and, as a result, help improve operation of franchises within California,” Wilk said. “The idea is to help the parties bypass a currently cumbersome amendment process and thus help assist cooperative negotiations between franchisees and franchisors.”
Currently, both the statute and the regulation have created significant disincentives for franchisors to negotiate the terms of sales with franchises. This measure is designed to simplify the negotiated sales of franchises in instances where all parties are in agreement about the terms of the amendments being negotiated.
AB 2637 will be heard next in the Assembly Appropriations Committee.