Massachusetts Takes Lead in Franchise Reform

Franchisees have long lamented the unfair contracting practices enforced by franchisors, and now Massachusetts has introduced a bill to help level the playing field. S. 1843, due in …

Franchisees have long lamented the unfair contracting practices enforced by franchisors, and now Massachusetts has introduced a bill to help level the playing field. S. 1843, due in its final revised form Wednesday, June 29, is expected help protect franchisees from franchisor encroachment, terminating the franchise relationship without cause and improving practices that reflect good faith and fair dealing between the two parties. For more on this continue reading the following article from BlueMauMau.

Massachusetts has introduced a bill, which aims to curb abusive agreements that govern the franchise relationship. State Senator Brian A. Joyce (D) has petitioned for the passage of the bill, which prevents franchisors from encroachment, terminating without cause and dealing with franchisees in less than good faith.

In remarks to Blue MauMau, Massachusetts Senator Joyce explains why he introduced the bill, S. 1843. "It is very important that we pass legislation to protect the investments of franchisees from arbitrary actions by franchisors," says the state senator. "It is both good economic policy and a matter of simple fairness to protect hard-working small business owners who have created jobs in our state and have honored their franchise agreements from losing all that they have worked for because some large corporation or hedge fund has a change of ownership or policy."

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The bill is still being further refined.

Massachusetts lawmakers are asking for franchise owner-operators with ties to the state to attend a hearing of the Joint Committee on Community Development and Small Businesses. It is scheduled for Wednesday, June 29, at 10:30 a.m. at the Massachusetts State House in Boston, room B-1. Those who want to share their franchise-owner experiences should so advise the vice chair of the committee, Representative Linda Dorcena Forry (D), in advance of the hearing date. They may also register at the room before the hearing begins on the 29th to make their comments.

This article was republished with permission from BlueMauMau.

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