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California was named “The Golden State” after the gold rush that followed the discovery of the precious metal at Sutter's Mill in January 1848. California could prove to be quite a gold mine for you if you decide to establish your new business among its 37.7 million residents. According to recent research by the IFA Educational Study (2008) California is the fastest growing economy in the US, with a large concentration of franchisors, franchisees and suppliers to the franchising industry. There are several issues affecting California’s franchise industry, including health care, restaurant mandates and labor. .

The California health care system’s problems have been magnified by its large population, with approximately 6.5 million uninsured. Governor Arnold Schwarzenegger and California’s legislature are trying to compromise on a Massachusetts-style health care reform package, even though the California “solution” will allegedly levy fees on doctors, hospitals, insurance providers and employers and require Californians to have some level of coverage.

California legislators have long been trying to enforce restaurant mandates. Although Gov. Schwarzenegger previously vetoed a bill because of the harm it would cause small businesses, he signed a bill in September 2008 that puts calorie counts on the menus and menu boards of restaurants operating 20 or more outlets under common ownership or as a franchised outlet in the state; this mandate will hit franchised restaurants the hardest.

The bill will go into effect in 2011. Labor policy in California has been in favor of unions; California passed a “card-check” bill past year that eliminates private elections in union-recognition campaigns and works to increase union membership for agricultural workers. Gov. Schwarzenegger vetoed the bill, although it may come back again in a different form.

Take a look at the following facts about California franchising: Franchising Establishments: 97,191 Franchising Total Jobs: 2, 290,058 Franchising Output: $105,731.6 (millions). Despite any issues in California, the state remains a great place to start your new business. Find your golden franchise opportunity here…

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