Assembly Bill 5 Hurts Small Franchise Businesses in California
The franchise industry supports the goal of AB 5; in fact, many franchise businesses have led the way on worker employment. However, through its codification and wide-ranging application of the so-called “ABC Test,” AB 5 could turn franchise owners – local entrepreneurs who license a name and operating system from an established brand – into employees of the company from which they license their brand. This would erode the franchise model and hurt franchise business owners across the Golden State.
Our Impact
From generating opportunities in their local communities, to employing thousands of Californians, locally owned franchises ensure Main Street can thrive.
75,840
Franchise Businesses
728,900
Jobs
$69.4 Billion
Economic output
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August 2019
A.B. 5… will create huge disruptions for California franchise small businesses and the communities they serve, burying us under an avalanche of red tape. It’ll hold back hiring, stop small businesses from expanding, and limit a business model that’s proven to work.
Ali Nekumanesh, The Fresno Bee / Read Full Article