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“How California AB 525 Became the Most Problematic Franchise Law in America,” 1851 Franchise

December 2015 | Article

Gray Plant Mooty attorney Carl Zwisler recently wrote an article for 1851 Franchise detailing the implications of the recent passage of AB 525 in the state of California—legislation that Zwisler calls "the most significant and problematic franchise law ever adopted in the United States." This article is the first in a new series of monthly columns written by Zwisler and published by 1851 Franchise.

"The law requires franchisors that comply with the law when they terminate or don’t renew franchises to buy their franchisees’ business assets," Zwisler explains in the article, "even if the franchisor did not sell the assets to the franchisee or benefit in any way from the sale." Zwisler also details the bill's evolution over the past two years, identifying key stakeholders and interest groups who were involved in shepherding it through the legislative process.

Click here to read more about AB 525 on 1851 Franchise, including the bill's history and its ramifications for franchisors doing business in California.

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