(MONTGOMERY, ALA., JUNE 5) – The International Franchise Association (IFA) today applauded the Alabama House of Representatives for its opposition to the so-called “Protect Alabama Small Business Act” (H.B. 352/S.B.129) in the Alabama Legislature.
The legislation sought to codify franchise contracts into Alabama state law, which would increase regulation on small business owners, reduce franchisee equity, and damage brand standards and public safety.
“The ‘Protect Alabama Small Business Act’ was the most harmful franchise-related legislation ever proposed in any state,” said IFA Senior Vice President of Government Relations and Public Affairs Matt Haller. “Its defeat is a sign that Alabama remains open for business. IFA and Alabama’s 12,000 franchise businesses thank the Alabama House of Representatives for their opposition to this bill.”
An analysis by market research firm FRANdata estimates that this legislation would have prevented more than 1,100 franchise units from opening and 12,000 jobs from being filled. Their analysis also showed that Alabama franchise growth to lag behind neighboring states while costing the state’s economy nearly $1 billion.
In addition to opposition from numerous Alabama franchise owners – many of whom testified about how the bill would harm their business – more than 80 franchise brands, including Hilton, Chicken Salad Chick, The UPS Store, and McDonald’s opposed the bill.