Are you keen to become a franchisee? You might be interested to know about a new bill that aims to protect franchisees from detrimental franchising practices. Protections for your small business may be vital for its survival and in the same way that small business insurance in California provides financial protection, this bill may help protect you from unfair trading practices.
The new bill is AB 2305, the Level Playing Field for Small Businesses Act. It has been said to be the most advanced bill to uphold proper franchising practices. It aims to protect franchisees from unfair franchise contracts, which tend to favor the franchisor. Assemblyman Huffman has said that it will help franchisees avoid bankruptcy and continue to thrive in the community.
The legislation is being touted as important in leveling the playing field and ensuring fairness for both franchisors and franchisees. Included in the act is a 60 day period to settle overdue plans, as opposed to 5. Franchisees will also be protected if the franchisor launches a new branch close to the franchisee.
As a new or prospective franchisee in California, it’s worth following the Act and understanding the proposed changes. Certainly the Act will be welcomed by franchisees, due to the added protection it may offer.
Protecting what is yours is very important in today’s competitive world. Another crucial way to protect your business is to organize small business insurance in California. Business insurance provides protection for your business assets and liability, and may provide a way of compensation if you are unable to operate for a time-period due to a disaster or peril. For more information on small business insurance, contact our office and speak to one of our professional insurance agents.