How to Deal with California AB 525

Via live webcast


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Amendments to the California Franchise Relations Act (AB 525) impose unprecedented obligations on franchisors with franchisees in California. Under AB 525 franchisors that terminate or refuse renewal in compliance with the law are required to purchase the franchisee’s business assets. They must also provide franchisees with written standards for approving a transfer before disapproving a transfer.

Attorneys from GPM’s Franchise team will present a free 60-minute webcast on Wednesday, December 9 to discuss the impact of the recent legislation, as well as options franchisors may have for adjusting their California franchising programs.

Among the issues we will discuss are:

  1. How has the “good cause” termination standard changed?
  2. What is the repurchase obligation and can it ever be avoided?
  3. How can written transfer standards be drafted to address all eventualities?
  4. What impact will the repurchase obligation have on franchisors’ and franchisees’ financial statements?
  5. What changes should franchisors consider making to their franchise agreements and franchise programs to mitigate the impact of AB 525?