Dunkin, Supercuts franchisee groups sue over California’s AB5 law

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Groups including the International Franchise Association, Dunkin Donuts Independent Franchise Owners Association and Supercuts Franchisee Association said it filed suit Tuesday night against the state of California over Assembly Bill 5, a recent state law restricting gig work like rideshare driving and freelance writing.Continue Reading BelowThe Asian American Hotel Owners Association is also part of the lawsuit, which seeks to prohibit California from applying AB5’s so-called ABC test, meant to prevent companies from misclassifying workers, to the relationship between franchisees and franchisors.CFOS WATCH FOR A POSSIBLE MINIMUM WAGE HIKE UNDER BIDEN”AB 5’s misapplication of the ‘ABC test’ to franchising is destructive for franchised brands and fails to understand the most basic aspects of the franchised business model,” International Franchise Association President and CEO Robert Cresanti said in a statement. “To lawfully and successfully maintain consistency and uniformity at its independently owned franchise locations, federal law mandates that a brand is required to set standards that apply to the operations of all individual owners, which ensures the quality and consistency that consumers expect.”“As a federal judge recently said, applying the ABC test to …

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