Today, Congresswoman Jan Schakowsky (IL-09), Ranking Member of the Innovation, Data, and Commerce Subcommittee of the House Energy and Commerce Committee, reintroduced the Franchisee Freedom Act. This legislation ensures that small business owners who enter into franchise agreements with big corporations will be afforded the opportunity to address claims against the franchisor, putting them on a level playing field.
“Franchisors can be a lifeline for those looking to create their own American dream. Unfortunately, due to a weak rule and even weaker enforcement of the Federal Trade Commission’s Franchise Rule, that dream can turn into a nightmare, one in which they are under the thumb of a predatory corporation,” said Congresswoman Jan Schakowsky. “That is why it is imperative for franchisees that we pass this legislation, which provides small business owners harmed by violations of the Franchise Rule with the means to recover from the harm done.”
“I appreciate Rep. Schakowsky for introducing the Franchisee Freedom Act. Full and proper disclosure is foundational to the success of franchising. This legislation would hold franchisors responsible for violations of the FTC Franchise Rule by allowing harmed franchisees their fundamental right to court access to mitigate their claims,” said Keith R. Miller, Principal, Franchisee Advocacy Consulting.
The Franchise Rule gives prospective purchasers of franchises the material information they need to weigh the risks and benefits of such an investment.
This legislation is cosponsored by Reps. Jared Huffman (CA-02) and Hank Johnson (GA-04).
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AAFD
The AAFD is a national non-profit trade association representing the rights and interests of franchisees and independent dealers throughout the United States. The AAFD’s mission is to achieve Total Quality Franchising. We do this by promoting fair and equitable franchising and dealer practices and empowering effective independent franchise associations. We also provide members with programs, services and products which enhance their individual businesses and careers.