Fair Franchise Practices Bill: System Changes and Renewal Agreements

(UnhappyFranchisee.Com) Proposed PA House Bill 1620 (Fair Franchise Practices Bill) prohibits franchisors from changing the terms of the signed franchise contract or depriving franchisees of the benefits originally provided in the franchise contract.

It states:

§ 914. System changes and renewal agreements.

A franchise contract may not be changed to do any of the following:

(1) Change the franchisee fee, royalty rates or other material financial terms of the franchise relationship.

(2) Operate to materially change, abrogate or deprive the franchisee of the intended benefits of the franchise contract.

What do you think of the System Changes and Renewal Agreements 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.

Go back to the main page:  PA’s Responsible Franchise Practices Bill: Overview and Discussion

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TAGS:  Franchise System Changes, Franchise Renewal Agreements, 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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