AB 1228 recently received approval from the Senate and is likely headed for Gavin Newsom’s signature.
“draconian” and costly to franchisees in a memo distributed to its members.
It would apply to restaurants with at least 60 locations nationwide, except for restaurants that make and sell their own bread. Suppliers urged the reduction of costs in operations that could lead to cost savings for fast-food restaurants they work with. IFA CEO Matthew Haller told FOX Business he participated in the negotiations with a goal of making sure franchises had involvement and representation. Some franchisees spoke directly to the governor’s office, he added. Ex-McDonald’s chef reveals why their ketchup tastes different from Heinz
The NOA suggested AB 1228’s passage could lead to similar efforts by legislative bodies elsewhere in the country, adding, “We need to remain unified so that this can not gain a foothold anywhere else.” California McDonald’s franchisees will see a projected annual cost of $250,000 per McDonald’s restaurant.McDonald’s “worked tirelessly” with the “California Owner/Operator Task Force” and others in the state to “protect owner/operators’ ability to make decisions for their businesses locally and protect their restaurants and their crew,” the company said in the message.
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