Senator Targets Franchise Abuses

Inequity in the ‘franchise partnership’ between franchisors and the franchisee community has finally resonated with some in power – in particular, Senator Catherine Cortez Masto (D-NV). In an 87-page report entitled: “Strategies to Improve the Franchise Model: Preventing Unfair and Deceptive Franchise Practices” and released by her office this week, the first-term Senator from Nevada…

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Oregon Fair Franchising Hearing

With pandemic issues swirling around countless minimum wage ihke proposals, we could almost forget about the need for Fair Franchising Legislation in so many states around the country – but we haven’t forgotten. In fact, the Oregon legislature will hold a public hearing next Wednesday, February 17 – via Zoom, of course – on House…

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Comments on FTC Franchise Rule Due Thursday

The Federal Trade Commission (FTC) is currently undertaking a formal review of the Franchise Rule, which you may recall, requires franchisors to publish a Franchise Disclosure Document (FDD) designed to provide material information to assist prospective franchisees in their decision whether or not to purchase the franchise. In its review, the FTC is looking at…

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FTC Getting Active on Franchise Issues

Well, if they’re not, they certainly could be! As we know, the Federal Trade Commission (FTC) is the only agency of the federal government with any direct charge relating to the franchising industry. As such, it is welcome news to report that the FTC will be holding a virtual workshop on November 10 as part…

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Senate Committee Hears from FTC Commissioners

The US Senate Committee on Commerce, Science and Transportation held a hearing this week specifically on the Federal Trade Commission, the federal agency charged with oversight of franchising across the country. The panel of witnesses at the August 5 hearing included all five of the FTC Commissioners, including Commissioner Rohit Chopra, who specifically highlighted some…

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Indiana Franchise Law Changed On July 1

Easy to miss in the tsunami of the coronavirus pandemic, a number of changes were recently made – effective two weeks ago on July 1 – to the Indiana Franchise Law. Of greatest import, franchisors registered in Indiana are now required to file an amended disclosure document within 30 days of any “material change” as…

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California Looks To Update Franchise Law

Back in 2015, California unanimously adopted the Franchise Relations Act (AB-525), legislation that significantly improved the franchise landscape in the Golden State. Now this session, Assemblyman Chris Holden has authored and filed AB-2672, legislation that will update the 2015 law in 3 significant ways. First, AB-2672 will make existing law enforceable on all franchise agreements…

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Fair Franchising in Play in Vermont

Fair franchising legislation has been filed for consideration this year in the Vermont legislature. Several weeks ago, 10 state legislators co-sponsored House bill 890, An Act Related to Regulating Franchise Agreements. The bill seeks to restore some semblance of balance to the franchisee – franchisor relationship and focuses on a number of specific points raised…

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Cortez Masto Files SBA Franchise Loan Transparency Bill

The ranking minority member on the U.S. Senate Small Business Committee, Senator Catherine Cortez Masto (D-NV) filed legislation last week to protect entrepreneurs who are considering purchasing a franchise.  The SBA Franchise Loan Transparency Act of 2019 (SB 2383) would require that before a lender could make a government-backed loan to a franchise, the franchisee…

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Senate Hears Need for Franchising Transparency

The U.S. Senate Banking, Housing and Urban Affairs Subcommittee on Economic Policy, chaired by Arkansas Senator Tom Cotton, held a public hearing this week on the matter: “Economic Mobility: Is the American Dream in Crisis?” One of the five individuals invited to testify was Subway franchisee and former Coalition of Franchisee Associations Chairman Keith Miller.…

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