Franchisee Freedom Act

This bill lets people in franchise systems take franchisors to court if they break the Federal Trade Commission’s Franchise Rule. If a franchisor violates the rule or tries to stop franchise owners from joining together or joining a trade group, the harmed person can sue for money, ask a judge to cancel the contract, and get their attorney fees covered.

It also protects the right of franchise owners to talk with each other and to join trade associations. Franchisors cannot punish or threaten franchisees for doing so. Cases can be filed in federal or state court where the harmed person lives.

Key points

• Who is affected: People who buy or run franchises, and their franchisors.
• What changes: Franchise owners can sue for rule violations; they can recover damages, cancel bad contracts, and get attorney fees. Franchisors cannot block or retaliate against owners for joining together or joining a trade group.
• Where to file: Federal or state court in the claimant’s home state/district.