On October 11, 2015, California's governor signed into law a bill amending the California Franchise Relationship Act (CFRA). Here is what you need to know about the amendments.
1) The amendment applies only to agreements executed or renewed on or after January 1, 2016.
Note: Unless the franchise is of indefinite duration and can be terminated by either party without cause.
2) The amendment is designed to provide franchisees greater protection against termination.
The amendment affects the franchisor's ability to terminate in two important ways. First, with certain exceptions discussed below, it increases the required cure period from 30 days to at least 60 days (but no more than 75 days unless the parties separately agree to a longer cure period)...