California 2019-2020 Regular Session Status: In Committee

AB 2672 — California Franchise Relations Act.

Last action — Referred to Coms. on B. & P. and JUD.

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2019-2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

The California Franchise Relations Act sets forth certain requirements related to the termination, nonrenewal, and transfer of franchises between a franchisor, subfranchisor, and franchisee, as those terms are defined. The act authorizes a franchisor, upon the termination or nonrenewal of a franchise, to offset any amounts owed to the franchisee against any amounts owed by the franchisee to the franchisor. This bill would authorize that offset provided the franchisee agrees to the amount owed or the franchisor has received a final adjudication of any amounts owed. Existing law requires a franchisee, before the sale, assignment, or transfer of a franchise, as specified, to another person, to notify, in writing, the franchisor of the franchisee's intent to sell, transfer, or assign the franchise. Existing law requires this notice of transfer to include specified information and meet certain criteria. This bill would specify that these provisions apply to any transfer if a new franchise agreement is required to be signed as a result of the transfer. The bill would limit its application to a franchise agreement entered into, amended, or renewed on or after January 1, 2021, or to franchises of an indefinite duration that may be terminated without cause.

Bill Text

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Action History

  1. Referred to Coms. on B. & P. and JUD.

  2. From printer. May be heard in committee March 22.

  3. Read first time. To print.

Sponsors

  • Holden · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Holden

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance labor
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Frequently asked questions

What does AB 2672 do?
The California Franchise Relations Act sets forth certain requirements related to the termination, nonrenewal, and transfer of franchises between a franchisor, subfranchisor, and franchisee, as those terms are defined. The act authorizes a franchisor, upon the termination or nonrenewal of a franchise, to offset any amounts owed to the franchisee against any amounts owed by the franchisee to the franchisor. This bill would authorize that offset provided the franchisee agrees to the amount owed or the franchisor has received a final adjudication of any amounts owed. Existing law requires a franchisee, before the sale, assignment, or transfer of a franchise, as specified, to another person, to notify, in writing, the franchisor of the franchisee's intent to sell, transfer, or assign the franchise. Existing law requires this notice of transfer to include specified information and meet certain criteria. This bill would specify that these provisions apply to any transfer if a new franchise agreement is required to be signed as a result of the transfer. The bill would limit its application to a franchise agreement entered into, amended, or renewed on or after January 1, 2021, or to franchises of an indefinite duration that may be terminated without cause.
Who sponsors AB 2672?
AB 2672 is sponsored by Holden.
What is the current status of AB 2672?
This bill died with 2019-2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 2672?
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Last checked for changes 3 months ago · updated continuously

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