California Franchise Legislation

Peter Lagarias has been a dedicated advocate for franchisees for decades in the legislative arena. He has been involved in drafting and advocating for franchise legislation in California since the 1990s.

In 1994, Lagarias testified before the California Legislature and assisted in drafting a statute which declared out of state venue clauses in California franchise agreements void. The goal was to address the one sided franchise agreement terms requiring franchisees to litigate their claims in other states at great expense and difficulty. Following these efforts, the California Legislature enacted Section 20040.5 of the California Business & Professions Code which provides that out of state venue clauses in franchise agreements with California franchisees are void.

In 2012, Lagarias drafted proposed amendments to the California Franchise Investment Law and to the California Franchise Relations Act. Many of these provisions were included in AB 2305 carried by Assemblyman Jared Huffman

(D-Marin). The bill passed the California State Assembly Judiciary Committee and received the majority of votes cast in the California State Assembly Business & Professions Committee, but still needed additional votes to proceed.

In 2013, Lagarias again volunteered and worked with national franchisee coalitions and associations for additional state legislation to protect franchisee rights. On April 16, 2013, Mr. Lagarias testified before the California State Senate Judiciary Committee in favor of SB 610 authored by Senator Hannah-Beth Jackson (D-Santa Barbara). SB 610 would amend the California Franchise Relations Act to: (1) provide additional statutory remedies for franchisees; (2) provide a statutory duty of good faith, and (3) confirm franchisee associational rights. As of May, 2013, SB 610 has passed the California State Senate by a vote of 22 to 12, and has been referred to the California State Assembly.

In addition, Lagarias supported AB 1141 carried by Assemblyman Brian Dahle (R-Sacramento) which would provide further remedies for California franchisees.

Additional information on both of these proposed California legislative bills is available under the Franchise Legislation Link.