Schakowsky Introduces Legislation to Empower Franchise Owners
WASHINGTON— Today, Congresswoman Jan Schakowsky (IL-09), Ranking Member of the Innovation, Data, and Commerce Subcommittee of the House Energy and Commerce Committee, reintroduced the Franchisee Freedom Act. This legislation ensures that small business owners who enter into franchise agreements with big corporations will be afforded the opportunity to address claims against the franchisor, putting them on a level playing field.
"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 Franchise Rule, that dream can turn into a nightmare, one in which they are under the thumb of a predatory corporation,” said Congresswoman Jan Schakowsky. “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."
"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 R. Miller, Principal, Franchisee Advocacy Consulting.
The Franchise Rule gives prospective purchasers of franchises the material information they need to weigh the risks and benefits of such an investment.
This legislation is cosponsored by Reps. Jared Huffman (CA-02) and Hank Johnson (GA-04).
This legislation is endorsed by the following organizations: 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, and Taco Time Franchisee Association.
###