Ed. Note: The following is a news release provided by the office of Assemblyman Scott Wilk.

Yesterday, a new law protecting the rights of small business franchise owners, authored by Assemblyman Scott Wilk, R-Santa Clarita, was signed into law by Gov. Jerry Brown.

“This is a huge victory for small business franchise owners,” Wilk said of Assembly Bill 525. “With the governor’s signature this bill begins to bring into balance the relationship between the small business owner and the corporate franchisor.”

Related Story: Veteran Support Bill Penned By Assemblyman Scott Wilk Dies In Senate

AB 525 makes it more difficult for major chains to unfairly terminate their franchise operators. The measure will update the current one-sided law to close loopholes and prohibit a corporation from closing a franchise business unless there has been a substantial violation of the contract. This measure will also allow franchisees to keep the equity they invested in the event of termination and sell the business to a new qualified owner.

Wilk jointly authored AB 525 with Assembly Speaker Toni Atkins, D-San Diego, Assemblymembers Bill Dodd, D-Napa, and Chris Holden, D-Pasadena.

AB 525 will become law on January 1, 2016.

The 38th Assembly District encompasses Simi Valley, the northern section of the San Fernando Valley and most of the Santa Clarita Valley.