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Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20170&cosponId=23070
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House of Representatives
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted: February 27, 2017 12:08 PM
From: Representative Carol Hill-Evans
To: All House members
Subject: Fair Franchise Practices
 
In the near future I plan to re-introduce legislation (former HB 1620 of 2015) that would provide the framework for fair, equitable, and responsible franchise practices. This legislation amends Title 12 (Commerce and Trade) by adding Chapter 55, entitled Fair Franchises.

Under current law, Pennsylvania is lagging behind the curve in regards to our franchise regulation. The laws in place do not do enough to protect franchisees from unfair practices in the sale and operation of franchised businesses. Simply adhering to the terms in a contract is not necessarily acting in fairness and good faith. Reasonable improvements that introduce new products and technologies need to be provided so that a franchisee can meet the competitive challenges that exist within the franchise system. Therefore, it is essential we pass legislation to help safeguard Pennsylvania’s franchisees from unfair and unconscionable business practices.

If enacted, my legislation would provide a framework for fair franchise practice. Specifically, it outlines the conditions under which a franchise contract may be terminated or not renewed, restricting termination to good cause shown such as default of payment, conviction, and failure to adhere to the franchise agreement. My legislation further prohibits a franchisor from acting in an unfair, deceptive, unethical, or misleading way by addressing a series of issues many franchisees are facing throughout the Commonwealth. Further, this legislation addresses the transfer and termination of a franchise, including steps to be taken and associated fees, indemnity, and enforcement of provisions throughout this chapter.

This legislation encompasses the majority of the issues relating to the franchise system and seeks to improve Pennsylvania’s franchise law through comprehensive reform. Please join me in co-sponsoring this legislation.