Federal Fair Franchising Practices Act of 1993

Summary

Federal Fair Franchising Practices Act of 1993 - Provides that a franchise shall include an implied duty by a party to the franchise to act in good faith in the performance and enforcement of the rights and duties established in the franchise, including an obligation, in making a decision or in exercising a power that directly affects the franchise or the franchised business concerned, to give due and equal regard to an interest of any other such party that is likely to be affected by the decision made or the power exercised. Requires the franchisor to exercise the skill and knowledge normally possessed by franchisors in good standing in similar communities or trade areas, unless the franchisor: (1) represents that it has greater skill or knowledge; or (2) conspicuously disclaims that it has the normal skill or knowledge. Specifies that such duty may not be disclaimed or qualified by agreement or by conduct, but a franchisor may by written agreement define specifically the nature and scope of its skill or knowledge and of its undertaking with a franchisee. Bars a franchisor from: (1) inhibiting its franchisees from forming an association or from associating with other franchisees for any lawful purpose; and (2) penalizing a franchisee for organizing or participating in an association of franchisees. Prohibits (with exceptions) a franchisor from placing, or licensing another to place, a new outlet in unreasonable proximity to an established franchised outlet if specified conditions are met. Bars a franchisor from discriminating against any person on the basis of race, color, religion, national origin, sex, or physical handicap. Authorizes a party to a franchise who is injured or likely to be injured by a violation or impending violation of this Act or of Federal provisions relating to disclosure requirements and prohibitions concerning franchising and business opportunity ventures to bring an action for relief in a court of competent jurisdiction.

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Documents

3 official files

• Introduced in House (text)

  Introduced in House · EN · 6 January 1993

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• Introduced in House (PDF)

  Introduced in House · EN · 6 January 1993

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• Introduced in House

  summary · EN · 6 January 1993

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