Fair Franchise Practices Bill: Due Care

(UnhappyFranchisee.Com) Proposed PA House Bill 1620 (Fair Franchise Practices Bill) requires franchisors “to exercise the skill and knowledge normally possessed by franchisors in good standing in the same or similar types of business.”

It states:

§ 907. Due care.

(a) Duty.–A franchisor is required to exercise the skill and knowledge normally possessed by franchisors in good standing in the same or similar types of business. A franchisor may satisfy this subsection by:

(1) contracting for, hiring or purchasing skill and knowledge;

(2) either:

(i) incorporating skill and knowledge in the franchise; or

(ii) communicating or providing skill and knowledge to the franchisee.

(b) System standards.–Franchisors and franchisees are mutually required to conform to clearly established systemwide standards of operation which are not arbitrarily promulgated or enforced.

(c) Training and assistance.–Franchisors shall provide each franchisee with initial training and continuing commercial or technical assistance during the entire life of the agreement.

What do you think of the Due Care provision of the proposed PA House Bill 1620 (Fair Franchise Practices Bill)?

Do you believe that making this provision law will be good for franchising?

Why or why not?  Please share a comment below.

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TAGS: Due Care, franchise legislation, PA House Bill 1620, PA Responsible Franchise Practices Bill, Fair Franchising Legislation, Franchise laws, Pennsylvania State Rep. Peter Daley

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