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.
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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