"By improving information available to prospective franchisees during the pre-sale process, the legislation strengthens the foundation on which the franchise relationship begins," Matt Haller, president and CEO of the IFA, said in a statement. "We hope this law will serve as a model for Responsible Franchising in other states."
The bill aims to enhance transparency during the franchise sales process, an area that has long been under scrutiny. This addition to the California Franchise Investment Law is a significant shift.
This bipartisan legislation introduces new registration and pre-sale disclosure requirements for third-party franchise sellers, including brokers, broker networks and franchise sales organizations.
California, with S.B. 919, joins states like New York and Washington, which already had similar regulations, reflecting a growing trend towards greater accountability in franchise broker practices.
Collection
[
|
...
]