Assemblyman Cryan to Introduce New Jersey Franchise Protection Amendment in Fall
TRENTON, N.J. (Blue MauMau) - The office of assemblyman Joseph Cryan (D) of New Jersey has informed Blue MauMau that the New Jersey Franchise Practice Act amendment has not been stifled as had been reported early this week. "Assemblyman Joseph Cryan is very committed to this bill. He anticipates its movement in September when we come back from our summer hiatus," states Tom Lynch, Chief of Staff for Cryan's Office.
The amendment to the New Jersey Franchise Protection Law instructs courts to be broader and more assertive in their efforts “to protect franchisees from unreasonable termination by franchisors that may result from a disparity of bargaining power between national and regional franchisors and small franchisees.” The bill includes offices and warehouses as a place where franchises are considered to operate, an update that takes into account growth in business-to-business franchise systems.
The assemblyman's office mentioned that although they had been contacted by franchisor lobbyist over the bill, few franchise owners have communicated with them.
"We've had a couple [of franchise owners]," says Lynch.
The bill was brought to the attention of Assemblyman Cryan by a distressed franchise owner and the issues with their franchisor. The office declined to say which franchise system.
The International Franchise Association, a lobbying group of largely franchisors, opposes the expanded definition of "place of business" for franchises. Earlier this year, its government relations director, Troy Flanagan, wrote a letter (pdf, 2 pgs) to Assemblyman Cryan on behalf of the IFA, saying such state franchise laws were superfluous since federal regulation already exists. "This [expansion of places of business] will likely cause certain franchised businesses already regulated by the Federal Trade Commission Franchyise Rule to be unnecessarily subjected to additional state scrutiny," he wrote.
The New Jersey amendment is expected to be introduced to an assembly committee in the Fall. The bill will be put in a committee, then voted on from the full assembly.
On the senate side, Senator Bob Smith is pushing the amendment through.
Lynch adds, "Assemblyman [Cryan] is pretty principled on this. We will go forward."
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