Rep. Jan Schakowsky has introduced the Franchisee Freedom Act.
By Andrew Carlo
Congresswoman Jan Schakowsky (D-IL), has introduced new legislation in the U.S. House of Representatives that is designed to place small business owners and franchisees on a level playing field with big corporations.
The Franchisee Freedom Act has been drafted with the intention of providing franchisees who have entered into franchise agreements with the ability to address claims against a franchisor.
“Franchisors can be a lifeline for those looking to create their own American dream. Unfortunately, due to a weak rule and even weaker enforcement of the Federal Trade Commission’s (FTC) Franchise Rule, that dream can turn into a nightmare, one in which they are under the thumb of a predatory corporation,” Schakowsky said in a statement issued by her office in the 9th District of Illinois. “That is why it is imperative for franchisees that we pass this legislation, which provides small business owners harmed by violations of the Franchise Rule with the means to recover from the harm done.”
According to Schakowsky, the FTC’s Franchise Rule gives prospective purchasers of franchises the material information they need to weigh the risks and benefits of such an investment. Schakowsky is the ranking member of the Innovation, Data, and Commerce Subcommittee of the House of Representatives’ Energy and Commerce Committee.
This legislation is cosponsored by Rep. Jared Huffman (D-CA) and Hank Johnson (D-GA).
“I appreciate Rep. Schakowsky for introducing the Franchisee Freedom Act. Full and proper disclosure is foundational to the success of franchising. This legislation would hold franchisors responsible for violations of the FTC Franchise Rule by allowing harmed franchisees their fundamental right to court access to mitigate their claims,” said Keith Miller, principal and founder of Franchisee Advocacy Consulting.
The full text of the bill is available here.
Organizations who have endorsed the legislation include:
- American Association of Franchisees and Dealers (AAFD)
- Barkley Franchisee Association (Central Bark)
- Coalition of Franchisee Associations (CFA)
- Domino’s Franchisee Association
- Dunkin Donuts Independent Franchise Owners
- Envy Owners’ Association (Massage Envy)
- Fair Franchising Initiative
- Griswold Homecare Franchisee Association
- Independent Association of BNI Franchisees
- Independent Association of Clean Juice Franchisees
- Independent Association of Cleaning Authority Franchisees
- Independent Association of Fantastic Sams Franchisees
- Independent Association of Fetch! Pet Care Franchisees,
- Independent Association of Goddard School Franchisees
- Independent Association of Grand Welcome Franchisees
- Independent Association of Home Instead Franchisees
- Independent Association of I Heart Mac & Cheese Franchisees
- International Association of Kumon Franchisees
- Independent Association of The Little Gym Franchisees
- Independent Association of Music Go Round Franchisees
- Independent Association of PJ’s Coffee Franchisees
- Independent Association of Woodhouse Spas Franchisees
- Maine Franchise Owners Association
- National Franchisee Association (Burger King)
- National Jack in the Box Franchisee Association
- North American Association of Subway Franchisees
- National TUPSSO Franchise Owners Association (UPS Stores)
- Pearle Vision Franchisee Association
- Pit Owners Association (Dickey’s BBQ)
- Reform Lodging
- Taco Time Franchisee Association
