(UnhappyFranchisee.Com) Coalition of Franchisee Associations (CFA) Chairman Keith Miller testified November 19, 2013 in favor of the Pennsylvania’s proposed Responsible Franchise Practices Bill, HB 1620.
Championed by former Quiznos franchise owner & PA Representative Peter Daley (D), HB 1620 aims to protect franchisees from “fraudulent or unfair practices in the sale or operation of franchised businesses.”
Among others things, the provisions contained in the bill require franchisors to act in good faith and with the highest standard of due care.
It also protects franchisees from significant changes in renewals, limits on transfers and restriction on legal avenues in regards to franchisor-franchisee disputes.
While at least two of those who testified against the bill referred to franchising already being a “highly regulated industry” with lots of pre-sale protections in place for franchisees, Keith Miller (himself a Subway franchisee) took issue with this favorite claim of franchise salespeople.
In the excerpt of his testimony below, Miller points out that the FTC does not review nor approve Franchise Disclosure Documents (FDDs).
In fact, Miller states that the FTC only has a single person on staff assigned to The Franchise Rule.
What do you think?
Is franchising a “highly regulated industry” that already has stringent protections in place for would-be franchise owners?
Please share your opinion or experience below.
Learn more about HB 1620: PA’s Responsible Franchise Practices Bill: Overview and Discussion
IS FRANCHISING ALREADY OVER-REGULATED? OR DO YOU SUPPORT PA HB 1620 RESPONSIBLE FRANCHISE PRACTICES BILL 1620? PLEASE SHARE A COMMENT BELOW.
TAGS: Keith Miller, CFA, Coalition of Franchisee Associations, franchise legislation, PA House Bill 1620, PA Responsible Franchise Practices Bill, Fair Franchising Legislation, Franchise laws, Pennsylvania State Rep. Peter Daley
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