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Section 31220 of the California Franchise Investment Law expressly
provides franchisees the right to freely associate:
“It shall be a violation of this division
for any franchisor,
directly or indirectly, through any officer, agent or
employee, to
restrict or inhibit the right of franchisees to join a trade
association or to prohibit the right of free association
among
franchisees for any lawful purposes. Notwithstanding Section
31410,
a violation of this section shall not constitute a crime.” |
Franchisees can gain substantial benefits from participation in an
independent association. There is truth to the old adage that there is
strength in numbers. Our firm has represented franchisee associations in
negotiations and in litigation. Please contact us to discuss issues and
challenges faced in your system and whether forming a franchisee
association is right for your system.
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