AB 257 is a state bill, sponsored by Assembly Member Lorena Gonzalez (San Diego), that would have dismantled the fast food franchise restaurant model. The legislation would have created a Fast Food Sector Council to establish industrywide minimum standards on wages, working hours, and other working conditions. It would have made the franchisor responsible for ensuring compliance by their franchisees and would have eliminated any independence for a franchise restaurant. The Fast Food Council would be comprised of unelected bureaucrats making decisions for an entire industry, without any oversight from public officials.

Fortunately, AB 257 was defeated on the Assembly Floor and fell 3 votes shy of passage. Assembly Member Evan Low (San Jose) stood with franchise restaurants and was a critical vote by withholding support for AB 257 — ensuring the bill’s eventual defeat in the State Assembly.

Despite this, Assembly Member Gonzalez filed a motion to reconsider AB 257 and it could be revived in January 2022. The Silicon Valley Restaurant Association will remain vigilant and continue to advocate for restaurants, when it comes to AB 257.