FAST Recovery Act:

Good for Business. Better for California.

Corporate fast-food franchisors will do almost anything to expand their profits—even during pandemics and economically uncertain times.

Corporations like McDonald’s have continued to make record profits while leaving the individual small businesses to take on all the responsibility.

But local California franchise owners AND workers have been hanging on together through it all. The best local fast food franchisees are high-road employers. They know their hard-working frontline employees kept the doors open during the darkest days of 2020 & 2021. They believe their workers are essential. They are committed to protecting their workers and their profits.

It’s a system designed to reward abusive practices. We can’t stop abuses through enforcement alone, we need to change the system entirely.

That’s why it’s time for franchisees and their workers to stick together and SUPPORT the FAST Recovery Act.

Don’t buy the corporate myth.

READ THE BILL

AB257: the facts

1. Makes it harder to squeeze California franchisees.

Profit margins are thin for fast-food franchisees, and wages are low for fast-food workers. That’s because corporate franchisors are regularly squeezing both California franchisees and workers.

They may prevent franchisees from using less-expensive suppliers.

They may require franchisees to stay open during unprofitable overnights. They may prevent franchisees from raising prices. So, local franchisees often can’t make a profit without keeping wages low.

The FAST Recovery Act will set standards for all of fast food, reducing pressure to pay low wages. If corporate franchisors set terms that keep California franchisees from making enough money to meet the new standards – that will be against the law.

2. Makes corporate franchisors responsible for the problems they create.

Corporate franchisors say local franchise operators are in business “for yourself but not by yourself.” Until local franchisees get into trouble. If an employee files a wage or safety claim, corporate franchisors say: Now, you’re on your own.

They point to contract clauses that say: the local franchise operator is solely responsible, and the corporate franchisor can’t be sued.

Under the FAST Recovery Act, corporate franchisors will share liability for labor law violations. And, if a California franchisee ends up with any federal, state or local legal liability because of the terms of the franchise agreement, corporate franchisors have to help cover the cost.

3. Makes it harder for corporate franchisors to raise costs on California franchisees.

Under the FAST Recovery Act, when corporate franchisors move to increase California franchisees’ costs, franchisees can push back if those resources are needed to comply with wage and safety standards.

Expanded corporate profits and higher dividends shouldn’t be more important than the safety of a 770,000 workers, their families and their communities across California.

4. Protects high-road employers.

The FAST Recovery Act creates a sector council, including employer representatives, to set common sense standards for the industry. That means employers who pay fair wages, properly train employees, and provide safe workplaces won’t be undercut by corporate chains paying poverty wages.

5. A forum for honest dialogue.

The FAST Recovery Act’s fast-food sector council will offer a forum for dialogue between California franchisees and workers about how the industry should operate.

Bringing together the voices and experiences of employers and employees can only make for a better industry.

The best California franchise operators have nothing to fear and much to gain from sitting at the table to discuss industry challenges with the workers they depend on every day to succeed.

AB 257, the FAST Recovery Act, would:

* Help local franchisees secure financial resources and flexibility so they can operate safely, in compliance with health, safety, and workplace laws

* Require corporate franchisors to share legal responsibility for ensuring compliance with health and safety regulations.

* Permit local small business franchisees to file legal actions to win improvements from corporate franchisors when restrictive contract terms present a barrier to complying with health, safety and workplace laws.

Read the bill here

What the media is saying

LEGAL EXPERTS WEIGH IN ON THE FAST FOOD SECTOR COUNCIL

LEGAL EXPERTS WEIGH IN ON THE FAST FOOD SECTOR COUNCIL

Protecting Franchisees and Workers in Fast Food Work

Protecting Franchisees and Workers in Fast Food Work

“Why have existing standards so spectacularly failed to protect this vulnerable but essential workforce? The structure of the fast food industry creates significant barriers for franchise fast food restaurants to observe minimum labor and safety standards while still making a profit. Corporate franchisors have little incentive to ensure that their franchisees have the resources they need to operate safely, responsibly, and in compliance with laws meant to protect employees.”

Fisk and Reavis review AB-257 as a solution, find that the Sector Council proposed in the legislation is “well established and legally permissible,” and conclude that, “The California Legislature should enact the proposed FAST Recovery Act when it comes up for a vote in 2022.”

Read the report here

“It’s time to level the playing field for small business employers who want to recruit and retain quality workers through good pay, fair work rules, safe workplaces and ongoing opportunities for growth and development(…) AB 257 would form a Fast-Food Sector Council to give small business owners in this industry a seat at the table. The Council would bring together fast-food workers, local franchisees, corporate franchisors, and public officials to develop industry standards for the fast-food sector.”


Bianca Blomquist
Senior California Policy Manager SMALL BUSINESS MAJORITY

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