Franchise Reform Act

Summary

Franchise Reform Act - Requires, with limited exceptions, a franchisor to notify a franchisee at least 90 days in advance of the franchisor's intention to terminate or not to renew the franchise, and to state the reasons for such intended action. Prohibits a franchisor from terminating a franchise unless: (1) the franchisor is effecting a market withdrawal; or (2) the franchisor has good cause for such termination and has provided proper notice, and the franchisee has not corrected the conduct specified as the reason for termination within 60 days of such notification. Prohibits a franchisor from failing to renew a franchise unless: (1) the franchisor is effecting a market withdrawal; (2) the franchisor allows the franchisee 90 days to sell the franchise; or (3) the franchisor compensates the franchisee for business losses attributable to such disfranchisement. Prohibits a franchisor from discriminating among franchisees in any business matter except under specified conditions. Makes any franchisor who has violated the requirements of this Act civilly liable to the aggrieved franchisee.

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Documents

1 official file

• Introduced in House

  summary · EN · 5 January 1981

  Open at official source

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