The independence of California small and diverse business owners is under attack.

Quick serve (“fast food”) restaurant franchises are a proven pathway to business ownership for thousands of Californians, including a higher proportion of women and diverse owners than non-franchised businesses.

These owners are independent and legally separate businesses that control the operation of their restaurant, but benefit from being affiliated with a national brand.

There is no evidence that there is a higher rate of violations of California’s labor laws at these restaurants.

AB 257 would strip these owners of their independence by making their national brand legally responsible for how the owner manages their employees. The bill would fundamentally change the contractual terms between independent franchisees and the national brand.