News & Analysis as of

Franchises California

Proskauer - Tax Talks

California Franchise Tax Board (FTB) to Apply Market-Based Sourcing Rules to Nonresident Directors of California Based...

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On Monday, September 9, 2024, the California FTB approved proposed amendments to California’s personal income tax code. This proposed rule would impose California income tax on non-resident/non-employee corporate...more

Whiteford

Client Alert: Franchise Sales Likely to Get New Level of Regulation Over Third-Party Sellers

Whiteford on

A bill passed by the California Senate on May 22, 2024, Senate Bill No. 919 (“Bill 919”), will address a gap in the regulation of franchise sales – namely, a lack of transparency regarding the role and background of...more

Fox Rothschild LLP

California Paves Way for Franchise Broker Registration and Disclosure Model

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Back in December 2022, we published a blog informing readers that guidance on franchise sales brokers and agents may be on the horizon. The North American Securities Administrators Association’s (“NASAA”) Franchise and...more

Fox Rothschild LLP

My Start-Up or Emerging Franchise System Negotiated with a Prospective Franchisee! Now What?

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New and emerging franchise systems are often very eager to sign those first franchisees. All too often, they are willing to make concessions to get the franchisees on board, despite their franchise attorney’s recommendation...more

Fox Rothschild LLP

California Repeals FAST Act, Approves New Fast-Food Industry Regulations

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California voters will no longer decide the fate of the controversial Fast Food Accountability and Standards Recovery Act (FAST Act), which was expected to significantly affect fast-food restaurants in the state, including...more

Best Best & Krieger LLP

California Governor Signs Batch “Broadband” Permit Processing Bill (AB 965); Vetoes Update to State Video Franchising Law (AB 41)

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When AB 965 goes into goes effect on Jan. 1, 2024, California local agencies will be required to undertake “batch broadband permit processing.” Batch broadband permit processing is the simultaneous processing of two or more...more

Fisher Phillips

California Franchise Owners Beware: State Cracking Down on Use of Business Model to Avoid Higher Minimum Wage Pay

Fisher Phillips on

A recent multimillion dollar wage theft citation against a California franchise operation should put fast-food businesses and other franchise models on notice that your business model could be the next target. The California...more

Buchalter

The Slow Down Of The FAST Act: Monumental Deal Reached Which Could End Joint Employer Liability And Other Threats To The Franchise...

Buchalter on

On September 11, 2023, an unprecedented deal was announced by labor groups and the fast food industry which would give California workers a $20 minimum wage and repeal The Fast Food Accountability and Standards Recovery Act...more

Littler

Hot Take(out): California Fast Food Franchises Could Face Increased Liability

Littler on

It’s been a busy spring at the California state capitol.  Among the few thousand bills being considered by California’s legislature this year, AB 1228 stands out.  The bill would essentially create joint liability for...more

Lewitt Hackman

California Fast Food Franchisors Targeted Again

Lewitt Hackman on

California Assembly Bill 257, the Fast Food Accountability and Standards Recovery Act (the “FAST Act” enacted in 2022), was to become effective January 1, 2023. The FAST Act established a 10-member Fast Food Sector...more

ArentFox Schiff

California Bill Would Make Fast-Food Franchisors Liable for Franchisees' Violation of Wage Law

ArentFox Schiff on

California Assembly Bill 1228 (A.B.1228), otherwise known as the Fast-Food Franchisor Responsibility Act, was introduced on February 16, 2023. If passed into law, fast food restaurant franchisors and franchisees will share...more

Buchalter

Staying in the FAST Lane: An Overview of New 2023 Employment Laws for California Franchisors and Franchisees

Buchalter on

Each New Year in California comes with several new laws that impact the workplace, including those in the franchising industry. With each year that passes, the California Legislature reminds us that their intent is to provide...more

Littler

Los Angeles the Latest City to Adopt Fair Work Week Measures

Littler on

Los Angeles, California recently joined San Francisco and Emeryville, California; New York City; Philadelphia; Chicago; Seattle; Euless, Texas; and Oregon as jurisdictions that have enacted “fair workweek” legislation.  The...more

Fox Rothschild LLP

(Updated) Not So FAST: FAST Recovery Act on Pause until 2024 Referendum

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On Labor Day, California Gov. Gavin Newsom signed the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act), which authorized the California Department of Industrial Relations to create a Fast Food Council...more

Jackson Lewis P.C.

Temporary Restraining Order Against the FAST Recovery Act

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While the Secretary of State continued to count signatures to determine if a potential referendum on the FAST Recovery Act (the Act) will make it on the ballot, a lawsuit was filed by a coalition of California small business...more

Fox Rothschild LLP

Not So FAST: FAST Recovery Act on Pause until 2024 Referendum - Updated

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On Labor Day, California Gov. Gavin Newsom signed the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act), which authorized the California Department of Industrial Relations to create a Fast Food Council...more

Fox Rothschild LLP

California’s Tectonic Plates Shift — Part III

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And so we come to the ultimate affront to franchising. Responding to strong lobbying efforts by the Service Employees International Union (SIEU), the California legislature passed the Fast Food Accountability and Standards...more

Fox Rothschild LLP

California’s Tectonic Plates Shift — Part II

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Signed into law on September 18, 2019 by Governor Gavin Newsom, Assembly Bill 5 (commonly known as AB-5), took effect on January 1, 2020. AB-5 codified the California Supreme Court’s June 2018 decision in Dynamex Operations...more

Fox Rothschild LLP

California’s Tectonic Plates Shift — Part I

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“California’s falling into the ocean!” Growing up in Southern California I heard that every time we had an earthquake. Usually, though, all I had to do was stand in a door jamb and wait until the shaking stopped (now not the...more

Jackson Lewis P.C.

Wrap Up of California’s 2022 Legislative Session – What Employers Need to Know

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California’s 2022 legislative session ended with numerous bills affecting employers and employment practices and procedures in the Golden State. Governor Gavin Newsom signed more than 30 of those bills into law, including...more

Jackson Lewis P.C.

FAST Recovery Act Signed by California’s Governor

Jackson Lewis P.C. on

On September 5, 2022, California passed Assembly Bill (AB) 257, titled the Fast Food Accountability and Standards Recovery Act, or the “FAST Recovery Act.” AB 257 establishes a Fast Food Council comprised of fast food...more

Fox Rothschild LLP

Consequential Bills to Employers Advance Through California Legislature

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Any one of three bills still advancing through the California Legislature’s 2022 session will have broad consequences for California employers if enacted. The Legislature has until August 31 to pass pending bills and send...more

King & Spalding

California's 2022 Proposed Labor and Employment Laws - Pending Legislation that Employers Should Monitor

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California employers, both new and old, should take note of pending bills that could further expand companies’ legal responsibilities under California’s extensive and unique labor and employment laws. Below is a sampling of...more

Jackson Lewis P.C.

California Legislature Gives the FAST Recovery Act a Second Chance

Jackson Lewis P.C. on

January 31st was the last day for the California legislature to approve bills that had been initially introduced in 2021 before they are shelved for good. The FAST Recovery Act (Assembly Bill (AB 257) was such a bill...more

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