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CA AB2632
Bill
Status
Introduced
2/20/2026
Primary Sponsor
Josh Hoover
Click for details
AI Summary
- Prohibits franchisors from using fees collected from franchisees for a stated purpose (such as advertising funds, loyalty collections, or technology fees) for anything other than that stated purpose
- Requires all fees collected for stated purposes to be segregated from the franchisor's other funds at all times
- Limits administrative expenses or overhead allocation to 10% of collected fees unless the franchisor discloses the exact amount or percentage being allocated to administration
- Mandates franchisors provide franchisees with annual detailed accounting of amounts collected and how they were used for any stated-purpose fees
- Grants franchisees the right to audit the franchisor's collection, use, and application of stated-purpose fees once per fiscal year
Legislative Description
California Franchise Relations Act: fees for a stated purpose.
Last Action
From printer. May be heard in committee March 23.
2/21/2026
Full Bill Text
No bill text available