BILL NUMBER: SB 610	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 9, 2013
	AMENDED IN SENATE  APRIL 8, 2013

INTRODUCED BY   Senator Jackson

                        FEBRUARY 22, 2013

   An act to add Article 2.5 (commencing with Section 20016) to
Chapter 5.5 of Division 8 of the Business and Professions Code,
relating to franchises.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 610, as amended, Jackson. Franchises.
   The California Franchise Relations Act sets forth certain
requirements related to the termination, nonrenewal, and transfer of
franchises between a franchisor, subfranchisor, and franchisee, as
those terms are defined.
   This bill would require these parties to deal with each other in
good faith, as defined, and prohibit a franchisor or subfranchisor
from restricting the right of a franchisee to join or participate in
an association of franchisees to the extent the restriction is
prohibited by existing law. This bill would authorize a franchisee to
bring an action against a franchisor or subfranchisor who offers to
sell, sells, fails to renew or transfer, or terminates a franchise in
violation of these provisions for damages caused thereby, or for
rescission or other relief deemed appropriate by the court. This bill
would additionally authorize a court in its discretion  to
increase the award of damages to an amount not to exceed 3 times the
actual damages sustained and  to award reasonable costs and
attorney's fees to a prevailing plaintiff. This bill would also
authorize a franchisor or subfranchisor who becomes liable to make
payments for a violation of these provisions to recover contributions
from any person who, if sued separately, would also have been liable
to make the same payments.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Article 2.5 (commencing with Section 20016) is added to
Chapter 5.5 of Division 8 of the Business and Professions Code, to
read:

      Article 2.5.  Relationships Between Franchisor or Subfranchisor
and Franchisees


   20016.  Without limiting the other provisions of this chapter, the
following specific rights and prohibitions shall govern the
relations between a franchisor, subfranchisor, and franchisee:
   (a) (1) These parties shall deal with each other in good faith in
the performance and enforcement of the franchise agreement.
   (2) "Good faith" for purposes of this subdivision means honesty in
fact and the observance of reasonable commercial standards of fair
dealing in the trade.
   (b) A franchisor or subfranchisor shall not restrict the right of
a franchisee to join or participate in an association of franchisees
to the extent the restriction is prohibited by Section 31220 of the
Corporations Code.
   20017.  (a) A franchisee may bring an action against a franchisor
or subfranchisor who offers to sell, sells, fails to renew or
transfer, or terminates a franchise in violation of Section 20016 for
damages caused thereby, or for rescission or other relief deemed
appropriate by the court. In addition, the court may in its
discretion  increase the award of damages to an amount not to
exceed three times the actual damages sustained and may 
award reasonable costs and attorney's fees to a prevailing plaintiff.

   (b) A franchisor or subfranchisor who becomes liable to make
payments under this section may recover contributions from any person
who, if sued separately, would have been liable to make the same
payments.