Fair Franchise Practices Bill: Illegal Provisions
(UnhappyFranchisee.Com) Proposed PA House Bill 1620 (Fair Franchise Practices Bill) states that a franchisor can’t require a franchisee “to mediate, arbitrate or litigate a claim or controversy under the franchise contract in a forum outside the state in which the franchised business is located…”
It states:
§ 911. Illegal provisions.
(a) Waiver.–A provision in a franchise contract which requires a franchisee or prospective franchisee to waive a provision of this chapter or a regulation under this chapter is void.
(b) Judicial forum.–A provision in a franchise contract which obligates a franchisee to mediate, arbitrate or litigate a claim or controversy under the franchise contract in a forum outside the state in which the franchised business is located shall be deemed to be in violation of this chapter and void.
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Do you believe that making this provision law will be good for franchising?
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TAGS: Illegal Provisions, franchise legislation, PA House Bill 1620, PA Responsible Franchise Practices Bill, Fair Franchising Legislation, Franchise laws, Pennsylvania State Rep. Peter Daley