AB 257, also known as the FAST Act, would, among other things, create an 11-member panel that would impose new rules on fast-food restaurants and institute a joint and several liability clause in franchisor contracts with their franchisees, effectively dismantling the franchisee business model in California. . . .
The panel could force restaurant operators to set wages, schedules and work rules, among other things. The joint and several liability portion would make the franchisor legally responsible for the actions of the franchisee, effectively ending the usual franchise business relationship, and it could ultimately result in franchisees becoming employees of a corporation instead of being independent, small-business owners.
The Stop AB 257 campaign on Wednesday released a report from the UC Riverside Center for Economic Forecast and Development that concluded passage of the bill would result in 20 percent higher food costs at restaurants. . . .
As for how the bill will affect his stores, which are located in Monrovia, Southgate, Pico Rivera and Woodland Hills, Ross said it would definitely impact wages and could possibly affect employee scheduling. The panel could also order restaurants to hire security guards to deal with issues caused by homeless individuals in the city of Los Angeles, he said.
