PA’s Responsible Franchise Practices Bill: Overview and Discussion

PA Fair Franchise Practices BillPA’s Responsible Franchise Practices Bill: Overview and Discussion 
PA House Bill 1620 (Responsible Franchise Practices Bill), filed by former Quiznos franchise owner Representative Peter Daley, aims to protect franchisees from “fraudulent or unfair practices in the sale or operation of franchised businesses.” Among others, the provisions contained in the bill require franchisors to act in good faith and with the highest standard of due care.  It also protects franchisees from significant changes in renewals, limits on transfers and restriction on legal avenues in regards to franchisor-franchisee disputes.  We will advise you on the hearing and any further movement of the proposal.

Do you support the PA Responsible Practices Bill 1620? 

Is this type of legislation good or bad for franchising?

Please share your opinion below and/or on each of the bill’s components linked to below.

PA House Bill 1620 Supporting Responsible Franchise Practices

On July 24, 2013, Pennsylvania State Rep. Peter Daley (D-49) – a former Quiznos franchisee – introduced Pa. House Bill 1620 designed help even the playing field in regards to franchisee-franchisor relations.

Pa. House Bill 1620 aims to protect franchisees from “fraudulent or unfair practices in the sale and operation of franchised businesses.” Among others, the provisions contained in the bill require franchisors to act in good faith and with the highest standards of due care. The language also protects franchisees from significant changes in renewals, limits on transfers and restrictions on legal avenues in regards to franchisor-franchisee disputes.

You may read and comment on each of the bill’s provisions at these links:

905.  Good Faith & Fair Dealing

906.  Limited Fiduciary Duty

907.  Due Care

908.  Sourcing of Goods & Services

909.  Encroachment

910.  Covenants Not to Compete

911.  Illegal Provisions

912.  Trade Associations & Discrimination

913.  Unlawful Sales Practices

914.  System Changes & Renewal Agreements

915.  Renewal

916.  Termination

917.  Transfer of Franchise System

918.  Remedies

919.  Penalties

Further reading:

PA Bill 1620

IFA letter opposing PA House Bill 1620

PA HB 1620 Franchise Practices Bill: CFA Chairman Keith Miller Testifies (Video)

The House Committee on Consumer Affairs is scheduled to hear this bill Tuesday, Nov. 19 at 9:30 a.m. in Room 140 of the Main Capitol Building.

Click here to write to the Pennsylvania House Committee on Consumer Affairs and ask for their support of HR 1620.

ARE YOU FAMILIAR WITH THE PA RESPONSIBLE FRANCHISE PRACTICES  BILL 1620?  PLEASE SHARE A COMMENT BELOW.

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

3 thoughts on “PA’s Responsible Franchise Practices Bill: Overview and Discussion

  • March 14, 2014 at 11:37 am
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    What has happened to this bill? Was it not brought to vote or put on the agenda for PA legislature? I had high hopes that this bill would help to break the chains for some of us in PA. Any news?

  • July 31, 2015 at 8:27 am
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    I would like to knows the status of this bill. Is there a way I could get involve?

  • July 31, 2015 at 8:27 am
    Permalink

    I would like to know the status of this bill. Is there a way I could get involve?

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