McDonald's Franchisee Association Strongly Opposes California AB 1228, Warns of Impact on Small Business Owners

SACRAMENTO, Calif., July 7, 2023 (VSNewsNetwork.com) - The National Owners Association (NOA), representing over 1,000 McDonald's franchisee owners operating more than 6,000 small restaurant businesses across the U.S., is strongly opposing California Assembly Bill 1228. The proposed legislation, if passed, would disrupt the established franchise model in California and undermine the ownership and livelihoods of small business entrepreneurs.

According to the NOA, which advocates for the rights of franchisees, AB 1228 would bind franchisees to their franchisors with joint liability, granting national fast-food corporations greater control over local restaurants. This move would erode the independence and decision-making authority currently held by small business owners. The NOA argues that the bill, under the guise of protecting franchisees, would instead result in increased corporate control and the demise of the successful franchise model that has enabled entrepreneurs to create hundreds of thousands of jobs in California.

The NOA cautions that AB 1228 would lead to a surge in frivolous lawsuits against franchisees, ultimately driving up operating costs and forcing locally owned restaurants to shut down. This would result in lost jobs and higher food prices for consumers. The association asserts that the bill's provisions would effectively transform small businesses into corporate-run establishments, compromising the independence and entrepreneurial spirit of franchise owners. The NOA joins thousands of California franchisees in vehemently opposing this legislation.

For more information on the National Owners Association, visit nationalownersassociation.com.

Source: National Owners Association via Newswire