Fairness in Franchising Act

Summary

Fairness in Franchising Act - Directs the Federal Trade Commission to conduct a continuing review and study of the substantive and procedural law applicable to franchises and franchising. Provides that no franchisor who is doing business in or affecting interstate commerce shall cancel, fail to renew, or otherwise terminate a franchise unless he furnishes prior notice of at least 90 days to each franchise affected thereby. States that a franchisor who is doing business in or affecting interstate commerce shall not cancel or terminate a franchise unless: (1) such franchisor has good cause for such cancellation or termination or (2) such franchisor is effecting a marketing area withdrawal. States that a franchisor who is doing business in or affecting interstate commerce shall not terminate a franchise by failure to renew unless: (1) such franchisor has good cause for such failure to renew; (2) such franchisor has a legitimate business reason for such failure to renew if the term of the agreement which is not being renewed was five years or more; or (3) such franchisor is effecting a marketing area withdrawal upon the expiration of the terms of the franchises outstanding in the area involved. Provides that a franchisor who fails to renew for a legitimate business reason shall pay to the franchise involved a reasonable compensation for the value to the latter's business, including, but not limited to, goodwill. Authorizes franchisees to maintain civil actions against franchisors for conduct prohibited under this Act. Authorizes Federal district courts to grant such equitable relief as is necessary to remedy the effects of conduct which it finds to exist and which is prohibited under this Act.

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1 official file

• Introduced in Senate

  summary · EN · 11 September 1975

  Open at official source

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