Preserving Your Franchise System in the Face of California AB-5

The new California law that makes sweeping changes to how businesses define the term “employee” poses an existential threat to the franchise industry. Now that AB-5 has been signed by Gov. Gavin Newsom, franchisors are contemplating what, if anything, they should do to prepare. 

Join Fox Rothschild for an overview of what the implementation of AB-5 may mean to the franchise model and what franchisors are doing to plan for its impact.

Topics

• Analyzing the potential risk in a wait-and-see approach
• Implementation of the “A-B-C Test” in the franchise context
• Strategies for limiting and isolating exposure from California-domiciled franchisees
• Utilizing franchise agreement provisions to ensure maximum flexibility
• The potential to mitigate exposure with insurance coverage