May 16, 2023 | No on AB 1228
Stop the Attack on Local Restaurants Launches Statewide Broadcast, Cable, Digital, Streaming and Direct Mail Campaign Opposed to AB 1228
For Immediate Release: May 16, 2023
Contact: Kathy Fairbanks, (916) 813-1010
Bill Takes Away the Rights of Thousands of Local Franchised Restaurant Owners to Run Their Own Small Business
SACRAMENTO, CA – Today, the Stop the Attack on Local Restaurants coalition launched a significant statewide voter education campaign including broadcast, cable, streaming, direct mail and digital advertising. This new wave of voter education, featuring local franchise restaurant owners, adds to its existing digital campaign against Assembly Bill 1228 (Holden).
The TV ads feature local franchised restaurant owners concerned that AB 1228 would take away their rights to run their own small businesses. AB 1228 would make national fast-food restaurant corporations legally liable for employment decisions made at local restaurants by local small business owners. Thus, AB 1228 would force the national corporations to exert significantly more control over the operations of local franchised restaurants.
“As a proud franchise owner, I strongly oppose Sacramento’s new attack on local restaurants,” said Mat A, a franchisee from Lake Elsinore in one of the 30-second ads. “AB 1228 would force national fast-food corporations to take more control over local franchise restaurants, taking away the rights of local restaurant owners to run our own businesses. AB 1228 would destroy franchise businesses like mine.”
Another 30-second ad features franchisee Brian H. from San Jose, who opened his healthy foods franchise after his son died from a food allergy. “Fifteen years ago I lost my son to a food allergy,” he says in the ad. “We opened up the restaurant not to open a business, but to open a safe restaurant for people with food allergies. AB 1228 would force national fast-food corporations to take control over local franchised restaurants. If AB 1228 passes, I can lose control of my own business.”
A third 30-second ad features Courtney E, restaurant owner from Sacramento who says, “Forty years ago my Mom & Dad risked everything to buy their first franchised restaurant. We’ve grown into a handful of restaurants that benefit our community and our employees. But now, some Sacramento politicians are pushing a drastic new bill. Their bill would force national fast food corporations to take more control over local franchised restaurants, taking away the rights of owners like me to be independent, to run our own restaurants.”
A final 30-second ad features a multitude of diverse local restaurant franchisees who oppose the bill.
The No on AB 1228 coalition includes more than 100 groups representing local restaurant owners, small businesses, social justice groups, ethnic business leaders, restaurant brands and trade associations.
AB 1228 is a drastic bill that would force national fast-food companies to exert more control over local franchised restaurants, fundamentally destroying the franchise model in California and taking away the rights of thousands of small business owners to run their local restaurants.
California is home to more than 15,000 franchised quick-service restaurants in virtually every community. The overwhelming majority of franchised restaurants are locally-run and operated by small business owners – many of whom are people of color, women, immigrants and veterans. AB 1228 would cut off one of the best pathways to business ownership for minority entrepreneurs.
Specifically, AB 1228 would force national fast-food corporations to exert significantly more control over local franchised restaurants by making them legally liable for local employment decisions. As a result, AB 1228 would essentially turn locally owned and operated restaurants into corporate run restaurants – stripping local restaurant owners of their authority as small business owners.
AB 1228 is scheduled to be voted on in the Assembly Appropriations Committee on May 18.