Kansas Introduces Franchise Legislation

Exclusive - Kansas Introduces Fair Franchise Bill, Franchisee Associations Ask for Support

TOPEKA, Kansas (Blue MauMau) - On January 31, 2007, the state of Kansas introduced Bill 2321, entitled the Kansas Responsible Franchise Practices Act, relating to numerous issues between franchisors and franchisees in connection with franchise contracts.  Although the legislation applies to franchisors domiciled in Kansas, many association leaders are encouraging all franchisees to unite in support of the Act by contacting Steve Brunk, the chairman of the House Committee on Commerce and Labor.  Some are also suggesting that franchisees introduce similar legislation in other states.  

In the Bill, one issue describes restricting franchisors from modifying existing franchise agreements through transfer or purchase of a new franchise, unless negotiated with the system’s franchisee association.  It defines an association as being incorporated with a board of directors elected by members, and representing 50 percent or more franchisees of the franchise.  The legislation would also prevent system changes extending beyond the franchise agreement, such as making modifications in the operations manual.  <Bill2321>