Fair Franchise Practices Bill: Trade Associations and Discrimination

(UnhappyFranchisee.Com) Proposed PA House Bill 1620 (Fair Franchise Practices Bill) states that a franchisor can’t “Prohibit a franchisee from joining a trade association [or]… Retaliate or discriminate against a franchisee for joining a trade association.”

It states:

§ 912. Trade associations and discrimination.

(a) Trade associations.–

(1) A franchisor may not do any of the following:

(i) Prohibit a franchisee from joining a trade association.

(ii) Retaliate or discriminate against a franchisee for joining a trade association.

(2) A trade association of franchisees shall not be subject to any applicable antitrust law of this Commonwealth.

(3) Neither the existence of nor membership in a trade association of franchisees shall be construed to be in restraint of trade.

(b) Discrimination.–

(1) Except as set forth in paragraph (2), a franchisor may not discriminate against a franchisee or prospective franchisee in the sale, renewal or approval of the transfer of a franchise on the basis of race, color, religion, gender, sexual preference, age, national origin or disability.

(2) This subsection does not prohibit a franchisor from making franchise opportunities available to individuals lacking the capital, training, business experience or other qualifications ordinarily required of its franchisees, pursuant to a good faith affirmative action or similar program adopted by the franchisor.

 

What do you think of the Trade Associations and Discrimination 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: Franchise Trade Associations and Discrimination, 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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