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Log In / Register | Jul 22, 2018

Maine Lawmakers Listen to Franchisees and Franchisors

Jim Coen testifies before Maine lawmakers on how this bill will help franchisees in its state
Franchise expert Jim Coen testifies in support of bill, photo/wolak

BLUE MAUMAU PODCAST - Maine state senators and representatives listened Wednesday afternoon to a filled room of franchisees and some franchisors argue for and against Maine's LD 1458, the Maine Small Business Investment Protection Act.

Maine Public Broadcasting Network reports:

Franchisees of businesses such as McDonalds, Dunkin' Donuts and others [Subway, Arby's, Burger King, hoteliers, pizza shop owners, others.] crammed a legislative hearing room today to speak in favor of a bill that would give them broader control over the terms of their operating agreements. Representatives from the national chains challenged what they said was an assault on corporate integrity.

...Walck [a Dunk'n franchisee in Maine] says all the rules can be changed at will by the corporation and the corporation can impose unfair restrictions on Mainers who want to invest in a business franchise. "It can prevent a franchisee from transferring or selling their business to family members or others," Walck said. "Or prevent franchisees from associating freely that allows good faith and fair dealing, or block us from buying the same products from independent sources at lower prices."

...That concerned committee member Rep. James Campbell, a Newfield independent. "People buying up a franchise, or 15 franchises, and all of a sudden they can't turn them over to their children," he said. (Listen to the 3:45 minute radio broadcast here.)

The International Franchise Association also had a strong showing to oppose the bill.

Blue MauMau recorded the entire bill's hearing with the Labor, Commerce, Research and Economic Development committee that started shortly after 2:30 p.m. until 5:30 p.m. EST.  Click on the pointer next to the speaker icon below (must have Java, not visable with iPad/iPhone). Or you can download the entire 10MB Podcast file (mp3 format).

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Don Sniegowski is editor of Blue MauMau, the daily news journal for franchise & small business owners. Call him at +1 (270) 321-1268, tweet @bluemaumau or email