BILL NUMBER:  AB 2637
  VETOED	DATE: 09/22/2016




To the Members of the California State Assembly:

I am returning Assembly Bill 2637 without my signature.

This bill allows franchisors to negotiate changes to a franchise
agreement without disclosing the terms to the Department of Business
Oversight (Department) or to other prospective franchisees.

While it is important to promote bringing new business into
California, doing so at the expense of transparency could be
detrimental to potential franchisees, as this bill proposes to do.
The current process, which allows the Department to review contract
changes, ensures that franchisees are not placed at a disadvantage in
their final agreement.

Sincerely,



Edmund G. Brown Jr.