Saturday, May 27 , 2017, 3:19 am | Fair 54º

 
 
 
 
Posted on August 22, 2014 | 8:05 a.m.

Jackson Bill to Protect Small Businesses Heads to Governor

Source: Lisa Gardiner for State Sen. Hannah-Beth Jackson

A bill by state Sen. Hannah-Beth Jackson, D-Santa Barbara, to level the playing field between small-business franchisees and their large corporate owners passed out of the Senate on Thursday and is headed to Gov. Jerry Brown for consideration. The vote was 23-9.

Senate Bill 610 seeks to correct an imbalance of power between convenience stores, fast-food restaurants and other franchisees and the giant, often out-of-state corporations that oversee them. SB 610 would provide greater protections to franchisees in the contracts that govern the relationship between them. Franchise agreements are typically hundreds of pages of technical information detailing the rights and responsibilities of the franchisor and franchisee.

“Current law allows these corporations to put these small franchisees out of business for even the most minor and arbitrary violations. There are more than 80,000 of these small business owners in California, and many of them have spent their life savings to open up a business. They are working hard to live the American dream and they deserve a fair chance,” Jackson said. “This bill would put these small business owners on a more equal legal footing and protect them from unfair actions that take away their livelihoods.”

SB 610 protects franchisees by:

» Barring corporations from putting a franchisee out of business unless they have committed a “substantial and material breach “ of the franchise agreement. This is the same standard that applies to all other business contracts in California, and eight other states have a similar standard in place.

» Protecting franchisees’ ability to sell or transfer their business without unreasonable interference.

» Protecting them from retaliation if they join a franchisee association.

Brown has until Sept. 30 to sign the bill. The bill has support of Small Business California, the Coalition of Franchise Association, the California Labor Federation and the SEIU, among others.

Jackson represents the 19th Senate District, which includes all of Santa Barbara County and western Ventura County.

— Lisa Gardiner is the communications director for state Sen. Hannah-Beth Jackson.

 
  • Ask
  • Vote
  • Investigate
  • Answer

Noozhawk Asks: What’s Your Question?

Welcome to Noozhawk Asks, a new feature in which you ask the questions, you help decide what Noozhawk investigates, and you work with us to find the answers.

Here’s how it works: You share your questions with us in the nearby box. In some cases, we may work with you to find the answers. In others, we may ask you to vote on your top choices to help us narrow the scope. And we’ll be regularly asking you for your feedback on a specific issue or topic.

We also expect to work together with the reader who asked the winning questions to find the answer together. Noozhawk’s objective is to come at questions from a place of curiosity and openness, and we believe a transparent collaboration is the key to achieve it.

The results of our investigation will be published here in this Noozhawk Asks section. Once or twice a month, we plan to do a review of what was asked and answered.

Thanks for asking!

Click here to get started >

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made through PayPal below, or click here for information on recurring credit-card payments.

Thank you for your vital support.



Daily Noozhawk

Subscribe to Noozhawk's A.M. Report, our free e-Bulletin sent out every day at 4:15 a.m. with Noozhawk's top stories, hand-picked by the editors.

Sign Up Now >