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

Comfort Keepers

Comfort Keepers - Butch and Niki Irwin - Father's Day - 1851 Franchise

A Legacy of Care: How a Father and Daughter Team Elevate Senior Living Across Michigan and Ohio

comfort-keepers-monroe-butch-niki-irwin

Minuteman Press International

Minuteman Press Franchise Owner Corey Sanders at his center in Greenville, SC.

Minuteman Press Franchise Review: From Business Consulting to Printing

minuteman-press-franchise-review-from-business-consulting-to-printing

HomeTeam Inspection Service

Sell Smarter: How Pre-Listing Inspections Give Home Sellers an Edge

pre-listing-inspections-seller-advantage

BoConcept

BoConcept Shares Tips for Homeowners Who Want to Refresh Their Living Rooms

boconcept-shares-tips-for-homeowners-who-want-to-refresh-their-living-rooms

BoConcept’s Carmen Henriquez Shares Tips for Seamless Indoor-Outdoor Design

boconcepts-carmen-henriquez-shares-tips-for-seamless-indoor-outdoor-design

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 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

Homebuyers Keep Buying — And That’s Good News for Home Service Franchises - 1851 Franchise

Homebuyers Keep Buying — And That’s Good News for Home Service Franchises

homebuyers-keep-buying-and-thats-good-news-for-home-service-franchises

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers - 1851 Franchise

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers

ai-unemployment-impact-white-collar-job-loss

How To Sell Just One Franchise: What You’ll Learn at FranCamp NJ 2025

how-to-sell-just-one-franchise-what-youll-learn-at-francamp-nj-2025

House Passes Tax Relief Package With Key Benefits for Small Businesses and Franchises

house-passes-small-business-tax-relief-bill-2025

McDonald’s To Hire 375,000 Workers as It Prepares for Major U.S. Expansion

mcdonalds-to-hire-375000-workers-as-it-prepares-for-major-us-expansion

Restaurant Business: Crumbl Cools Its Expansion, Refocuses on Profitability

restaurant-business-crumbl-cools-its-expansion-refocuses-on-profitability

How Car Sales Taught Buddy's Home Furnishings’ Mitchell Lee the Secrets of Franchise Development

how-car-sales-taught-buddys-home-furnishings-mitchell-lee-the-secrets-of-franchise-development

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

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

The Top 20 Handyman Franchises To Invest in for 2025

top-handyman-franchises-to-invest-in

The Top 20 Cleaning Franchises to Invest in for 2025

top-cleaning-franchises-to-invest-in

franchisee spotlight graphic with photo of Melissa & Matt Johnson and Pigtails & Crewcuts logo

Building a Family-Friendly Business: How Melissa and Matt Johnson Grew Pigtails & Crewcuts in San Antonio

how-melissa-and-matt-johnson-grew-pigtails-crewcuts-in-san-antonio

Sola Salons Franchisee Grows Salon Freedom Into a Multi-State Powerhouse 

sola-salons-franchisee-grows-salon-freedom-into-a-multi-state-powerhouse

What the FAST Act Could Mean for Franchising

MORE STORIES LIKE THIS