Labor/Employment,
Civil Litigation
Nov. 13, 2020
Assembly Bill 5 and the future of franchising
Despite damning precedent that the test may apply to the franchise relationship, franchisors may have a viable argument that federal and state franchise laws preempt or supersede it following a decision by a federal district court
Barry Kurtz
Shareholder
Lewitt Hackman
Kurtz is the chair of the Franchise & Distribution Practice Group at Lewitt Hackman and is a certified specialists in Franchise and Distribution Law by the California State Bar Board of Specialization
Matthew Soroky
Lewitt Hackman Shapiro Marshall & HarlanEmail: msoroky@lewitthackman.com
Matthew is a member of the Franchise & Distribution Law Practice Group at Lewitt Hackman in Encino.
2020 has been an unprecedented year for franchisors in numerous respects. Compounding economic and operational challenges from the COVID-19 pandemic, the legal landscape in California has placed franchisors in a defensive posture. While ride-sharing companies Uber and Lyft have secured a reprieve from Assembly Bill 5 by the recent passage of Proposition 22, the franchise industry's efforts to exempt franchise businesses from the three-step "ABC" test of AB 5 have been...
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