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State-level initiatives could affect franchising in this whirlwind legislative year.
Although lederai legislative activity has slowed in the election year, there is as much activity in the state legislatures as any other time in recent memory, with highprofile franchising legislation advancing in several states. The "fair franchising" legislation in California, AB 2305, is one of the most threatening pieces of legislation the franchise community has ever seen. California has captured the attention or the franchise community, hut many initiatives in other states continue to develop in this busy state legislative year. In addition to "fair franchising" laws, independent contractor legislation is also particularly popular in this session; some of the bills benefit franchising, while others would do significant damage to the franchise model. Here is a brief overview of legislation in other states that has flown under the radar while many eyes are on California.
Massachusetts
In Massachusetts, the International Franchise Association is actively lobbying in support o I HB 3515, authored by Rep. John Kcenan (D), which would clarify that franchisees or other parties to franchise agreements are independent contractors, and not employees of franchisors. Currently, franchisees don't fit the definition of "independent contractors" under the commonwealth's regimented worker classification system. This is in spite of the facts that franchisees operate as independent businesses and have employees themselves. Furthermore, the...