Federal Fair Franchise Practices Act of 1997

Summary

Federal Fair Franchise Practices Act of 1997 - Prohibits any person, in connection with the advertising, offering, sale, or promotion of any franchise, from: (1) employing a device, scheme, or artifice to defraud; (2) engaging in an act, practice, course of business, or pattern of conduct which operates or is intended to operate as a fraud upon any prospective franchisee; (3) obtaining property, or assisting others in so doing, by negligently making an untrue statement of a material fact or any failure to state a material fact; and (4) discriminating among prospective franchisees on the basis of race, sex, religion, disability, or national origin. (Sec. 4) Prohibits any franchisor or subfranchisor, in connection with the performance, enforcement, renewal, and termination of any franchise agreement, from: (1) engaging in an act, practice, course of business, or pattern of conduct which operates as a fraud upon any person; (2) discriminating among franchisees on the basis of race, sex, religion, disability, or national origin; (3) hindering or prohibiting the free association of franchisees for any lawful purpose, including the formation of or participation in any trade association made up of franchisees; and (4) discriminating against a franchisee by imposing requirements not imposed on other similarly situated franchisees or otherwise retaliating against any franchisee for membership or participation in a franchisee association. Prohibits a franchisor from: (1) terminating a franchise agreement prior to its expiration without good cause; (2) prohibiting a franchisee from obtaining equipment, fixtures, supplies, or services used in the business licensed by the franchise agreement from sources of the franchisee's choosing, with exceptions; and (3) prohibiting, or enforcing a prohibition against, a franchisee from engaging in any business at any location after the expiration (or termination for good cause) of a franchise agreement. (Sec. 5) Sets forth provisions concerning: (1) minimum standards of conduct (good faith, due care, and limited fiduciary duty) for each party to a franchise agreement; (2) a prohibition against requiring the inclusion of a franchise agreement term or condition which violates this Act or relieves a person from a duty or liability under this Act; (3) a prohibition against the waiver from compliance with this Act; (4) legal actions brought by persons injured or damaged by violations; (5) the right to arbitration or mediation in lieu of a legal action; (6) authorized legal actions by State attorneys general on behalf of State residents for alleged violations; and (7) the obligation to comply with all applicable State franchising laws to the extent not inconsistent with this Act.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 8 November 1997

   Introduced

   Referred to the House Committee on the Judiciary.

   Source: IntroReferral

2. 8 November 1997

   Introduced

   Introduced in House

   Source: IntroReferral

3. 8 November 1997

   Introduced

   Introduced in House

   Source: IntroReferral

4. 9 November 1997

   Introduced

   Sponsor introductory remarks on measure. (CR E2281-2282)

   Source: IntroReferral

5. 26 June 1998

   Referred

   Referred to the Subcommittee on Commercial and Administrative Law.

   Source: Committee

Votes

No vote records are attached yet.

Versions

• Introduced in House · 8 November 1997 · Official file

Documents

3 official files

• Introduced in House (text)

  Introduced in House · EN · 8 November 1997

  ViewDownloadOpen at official source

• Introduced in House (PDF)

  Introduced in House · EN · 8 November 1997

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 8 November 1997

  Open at official source

Sponsors

• Rep. LaFalce, John J. [D-NY-36] · D · Sponsor
• · hsju00 · Standing

Related records

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