CFA Calls for Grassroots Support for Pro-Franchisee Bills in Congress!
CFA asks all franchisees to contact their Members of Congress and ask for their support of H.R. 3195 and 3196!
On July 24, 2015, Rep. Keith Ellison, D-MN-05, introduced two bills, which, if signed into law, would benefit franchisees across the country. The Fair Franchise Act of 2015 (H.R. 3196) and the Small Business Administration (SBA) Franchise Loan Transparency Act (H.R. 3195) help franchisees like you by requiring financial transparency in franchise disclosure documents and granting franchisees more rights in the operations, transfer and sale of their businesses (among other provisions).
The Fair Franchise Act of 2015 (H.R. 3196) is aimed at leveling the playing field in regard to the franchisee-franchisor relationship. Among other provisions, H.R. 3196 prohibits unfair and discriminatory practices by franchisors. It also requires all parties to act in good faith and allows franchisees to seek judicial remedies for alleged violations of the contract — a right currently prohibited in many franchise agreements. An updated version of the bipartisan Coble-Conyers bill introduced decades ago, H.R. 3196 gives franchisees more control in the sale, transfer and renewal of their franchise and requires reasonable notice and cure periods in regard to the termination of an agreement.
The Small Business Administration (SBA) Franchise Loan Transparency Act (H.R. 3195) ensures transparency in the loan processes of the Small Business Administration. It requires franchisors to disclose average first-year revenues, number of franchise locations sold/out of business and average revenues for all franchise locations to prospective franchisees via the franchise disclosure document. As a result, franchisees like you will have a more accurate representation of sales and be able to purchase and run their business accordingly.
As franchisees, you are the true stakeholder in your business. CFA asks for your support by clicking here and asking your representatives to co-sponsor H.R. 3195 and 3196!