On Jan. 31, 2022, the California State Assembly passed AB 257, the Fast Food Accountability and Standards Recovery Act, also known as the “FAST Recovery Act.” The bill recently passed the State Assembly and awaits committee referral in the State Senate. If passed by the Legislature and signed by California Gov. Gavin Newsom, the FAST Recovery Act would dramatically change how the majority of California restaurants are regulated in multiple critical ways. The Fast Recovery Act would also fundamentally change the relationship between many restaurant franchisors and franchisees, and make franchisors jointly and severally liable for any employment-related violations committed by their franchisees.
While “Fast Food” is in the name of the bill, the legislation is far broader than its title suggests. It covers any restaurant concept with “30 or more establishments nationally that share a common brand” if it has the following four characteristics: 1) in its regular course of business provides food or beverages in disposable containers; 2) food is served for immediate consumption on or off premises; 3) operates with limited or no table service; and 4) customers pay before eating. For purposes of this GT Alert, concepts that meet the aforementioned criteria are collectively referred to as “Covered Restaurants.”
Covered Restaurants include those chains commonly associated with “fast food” but might also...
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