A new bill in the California legislature aims to give franchisees protection from having their businesses taken away from them by their respective corporate headquarters. The bill comes in response to the NLRB's recent ruling that chains can be held liable for workplace violations at their respective franchises. Franchise owners are concerned they could have their licenses terminated for even the smallest infraction and passed on to new owners. The bill is backed largely by the Service Employees International Union, which hopes shielding franchises will provide protection for workers as well in improving wages and conditions. Franchising companies have criticized the bill, stating that they see no need to change their relationship with their franchises.
See "Backed by SEIU, franchisees seek greater protection in contracts", Marc Lifsher, Los Angeles Times, August 19, 2014