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

Busy Bee Jumpers

Busy Bee Jumpers Buzzes into Franchising: Three New Franchisees Signed in First 30 Days

busy-bee-jumpers-buzzes-into-franchising-three-new-franchisees-signed-in-first-30-days

Fitness Premier

Fitness Premier 24/7 Clubs Reports Strong Midyear Momentum 

Fitness Premier 24/7 Clubs Reports Strong Midyear Momentum with Revenue Gains, Record Membership, and Strategic Expansion

fitness-premier-mid-year-growth-2025

Woodhouse Spas

image of a woodhouse spa franchise buildings exterior 

Woodhouse Spas Continues Strong Momentum With Double-Digit Growth in Q2

woodhouse-spas-q2-2025-growth-expansion

Layne's Chicken Fingers

Layne's Chicken Fingers-Mountain-State-Devo-June-2025

Layne’s Chicken Fingers Eyes Expansion in Mountain States

laynes-chicken-fingers-franchise-mountain-states-expansion

ServiceMaster Restore

ServiceMaster Restore Powers Into the Second Half of 2025 With Growth and Purpose-Driven Impact

ServiceMaster Restore Powers Into the Second Half of 2025 With Strong Growth and Purpose-Driven Impact

servicemaster-restore-powers-into-the-second-half-of-2025-with-strong-growth-and-purpose-driven-impact

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

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Image of Donald Trump pointing with red stripes in the background

August 1 Tariff Deadline Is Said to Have ‘No Extensions’: What This Could Mean for Franchises

august-1-tariff-deadline-franchise-impact

What June’s Jobs Report Means for the Franchise Industry

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

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

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

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

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

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

Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

From Corporate Careers to Community Roots: Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

kansas-couple-opens-childrens-lighthouse-gardner-olathe

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery 

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery in Overland Park, Kansas

paris-baguette-franchise-overland-park-khandelwal

Blending Tech, Hospitality and Health Care: How Three Women From Different Worlds Came Together to Build a Paris Baguette Franchise

paris-baguette-franchise-flower-mound-texas

What the FAST Act Could Mean for Franchising

MORE STORIES LIKE THIS