Fair Franchise Practices Bill: Illegal Provisions

(UnhappyFranchisee.Com) Proposed PA House Bill 1620 (Fair Franchise Practices Bill) states that a franchisor can’t require a franchisee “to mediate, arbitrate or litigate a claim or controversy under the franchise contract in a forum outside the state in which the franchised business is located…”

It states:

§ 911. Illegal provisions.

(a) Waiver.–A provision in a franchise contract which requires a franchisee or prospective franchisee to waive a provision of this chapter or a regulation under this chapter is void.

(b) Judicial forum.–A provision in a franchise contract which obligates a franchisee to mediate, arbitrate or litigate a claim or controversy under the franchise contract in a forum outside the state in which the franchised business is located shall be deemed to be in violation of this chapter and void.

What do you think of the Illegal Provisions 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: Illegal Provisions, 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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