1851

<a href="https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB257&utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-the-fast-act-could-mean-for-franchising-2717918" target="_blank" rel="nofollow">The Fast Food and Accountability and Standards Recovery Act</a> — the FAST Act — advanced in California this week after being passed by the California State Assembly. The bill aims to give California fast-food workers and unions more influence over wage rates and workplace standards, primarily by including them in an 11-person committee that would have the authority to draft state labor standards for fast-food restaurants.&nbsp;The panel would include two fast-food workers; two representatives of a union or other labor advocacy group; one individual from a restaurant franchisor; another from a restaurant franchise; and five representatives of various state regulatory agencies.&nbsp;“Imagine cooks, cashiers and janitors sitting around the table with owners, franchisees and government officials to set fair standards for pay, hours and working conditions across California’s entire fast food industry,” <a href="https://www.seiu.org/mary-kay-henry?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-the-fast-act-could-mean-for-franchising-2717918" target="_blank" rel="nofollow">Mary Kay Henry</a>, president of the Service Employees International Union (SEIU), said in a statement. “It’s an absolute game-changer for reducing income inequality and how we treat fast-food workers in this state.”Notably for fast-food franchise concepts in California, the bill would also legislate that franchisors and franchisees be considered <a href="https://1851franchise.com/what-does-it-mean-to-be-a-joint-employer-the-u-s-department-of-labor-has-new-rules-2712018">joint employers</a>, which means they would share accountability for the licensees’ violation of labor standards. The joint employer discussion has been a <a href="https://1851franchise.com/recent-court-ruling-brings-joint-employer-threat-back-to-franchising-2713838">point of contention</a> for several years in franchising, with franchisors arguing that it could result in a heightened liability and turn businesses off from the franchise model.&nbsp;The <a href="https://www.franchise.org/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-the-fast-act-could-mean-for-franchising-2717918" target="_blank" rel="nofollow">International Franchise Association</a> (IFA) has already <a href="https://www.restaurantbusinessonline.com/workforce/bombshell-fast-food-bill-advances-california?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-the-fast-act-could-mean-for-franchising-2717918" target="_blank" rel="nofollow">released a statement</a> expressing their disapproval. The Fast Act “is one of the most damaging pieces of legislation to ever impact the franchise business model,” <a href="https://www.franchise.org/our-team/staff/jeff-hanscom?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-the-fast-act-could-mean-for-franchising-2717918" target="_blank" rel="nofollow">Jeff Hanscom</a>, the IFA’s vice president of state and local government affairs, said in a statement. “It will have disastrous impacts to the thousands of franchise restaurants across the state and effectively dismantle the business model.”Related articles:<ul><li><a href="https://1851franchise.com/recent-court-ruling-brings-joint-employer-threat-back-to-franchising-2713838#stories">Recent Court Ruling Brings ‘Joint Employer’ Threat Back to Franchising</a></li><li><a href="https://1851franchise.com/nlrb-finalizes-ruling-to-reduce-joint-employer-liability-for-franchisors-2712391#stories">NLRB Finalizes Ruling to Reduce Joint Employer Liability for Franchisors</a></li></ul>

What the FAST Act Could Mean for Franchising

1851 Franchise

The recently passed bill, which would give fast-food workers and unions more say on wage rates and workplace standards, also aims to label franchisors and franchisees as joint employers.

what-the-fast-act-could-mean-for-franchising

Onigilly Japanese Kitchen

Unlocking the Potential: How Much Can You Earn as an Onigilly Franchisee?

unlocking-the-potential-how-much-can-you-earn-as-an-onigilly-franchisee

Filta Environmental Kitchen Solutions

DeWitts Ignite New Chapter for Filta Environmental Kitchen Solutions in Reno 

Grease, Grit, and Growth: DeWitts Ignite New Chapter for Filta Environmental Kitchen Solutions in Reno, Nevada

grease-grit-and-growth-dewitts-ignite-new-chapter-for-filta-environmental-kitchen-solutions-in-reno-nevada

Layne's Chicken Fingers

Layne's Chicken Fingers-50 Unit-Wendy's-Franchisee-June-2025

Why This 50 Unit Wendy’s Franchisee Is Betting on Layne’s for His Next Big Move

wendys-franchisee-expands-with-laynes-chicken-fingers-texas

CapitalSpring

CapitalSpring’s Jim Balis Talks Growth, ROI and the Future of Fast Casual on “Rock My Restaurant”

capitalsprings-jim-balis-talks-growth-roi-and-the-future-of-fast-casual-on-rock-my-restaurant

Children's Lighthouse

Children’s Lighthouse Ramps Up Growth in First Half of 2025 With Strategic Expansions, Franchise Signings, and New Headquarters

childrens-lighthouse-ramps-up-growth-in-first-half-of-2025-with-strategic-expansions-franchise-signings-and-new-headquarters

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

petbar Franchise Costs, Fees, Profit and Data for 2025

petbar-franchise-deep-dive

Design with outline of three houses and people working on laptops within them

Top 10 Low-Cost Home-Based or Mobile Franchises for 2025

low-cost-home-based-mobile-franchises

Franchisee spotlight graphic with photo of Juan & Whitney Fernandez & family, BIGGBY COFFEE logo

From Chiropractic to Coffee: These BIGGBY® COFFEE Franchisees Are Brewing Something New in Troy, Ohio 

biggby-coffee-franchise-coming-to-troy-ohio

What the FAST Act Could Mean for Franchising

MORE STORIES LIKE THIS