legislation: 105-hr-2954
Data license: Public Domain (U.S. Government data) · Data source: Federal Register API & Regulations.gov API
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| 105-hr-2954 | 105 | hr | 2954 | Federal Fair Franchise Practices Act of 1997 | Commerce | 1997-11-08 | 1998-06-26 | Referred to the Subcommittee on Commercial and Administrative Law. | House | Rep. LaFalce, John J. [D-NY-29] | NY | D | L000556 | 0 | Federal Fair Franchise Practices Act of 1997 - Prohibits any person, in connection with the advertising, offering, sale, or promotion of any franchise, from: (1) employing a device, scheme, or artifice to defraud; (2) engaging in an act, practice, course of business, or pattern of conduct which operates or is intended to operate as a fraud upon any prospective franchisee; (3) obtaining property, or assisting others in so doing, by negligently making an untrue statement of a material fact or any failure to state a material fact; and (4) discriminating among prospective franchisees on the basis of race, sex, religion, disability, or national origin. (Sec. 4) Prohibits any franchisor or subfranchisor, in connection with the performance, enforcement, renewal, and termination of any franchise agreement, from: (1) engaging in an act, practice, course of business, or pattern of conduct which operates as a fraud upon any person; (2) discriminating among franchisees on the basis of race, sex, religion, disability, or national origin; (3) hindering or prohibiting the free association of franchisees for any lawful purpose, including the formation of or participation in any trade association made up of franchisees; and (4) discriminating against a franchisee by imposing requirements not imposed on other similarly situated franchisees or otherwise retaliating against any franchisee for membership or participation in a franchisee association. Prohibits a franchisor from: (1) terminating a franchise agreement prior to its expiration without good cause; (2) prohibiting a franchisee from obtaining equipment, fixtures, supplies, or services used in the business licensed by the franchise agreement from sources of the franchisee's choosing, with exceptions; and (3) prohibiting, or enforcing a prohibition against, a franchisee from engaging in any business at any location after the expiration (or termination for good cause) of a franchise agreement. (Sec. 5) Sets forth provisions concerning: (1) minimum standards of conduct (good faith, due care, and limited fiduciary duty) for each party to a franchise agreement; (2) a prohibition against requiring the inclusion of a franchise agreement term or condition which violates this Act or relieves a person from a duty or liability under this Act; (3) a prohibition against the waiver from compliance with this Act; (4) legal actions brought by persons injured or damaged by violations; (5) the right to arbitration or mediation in lieu of a legal action; (6) authorized legal actions by State attorneys general on behalf of State residents for alleged violations; and (7) the obligation to comply with all applicable State franchising laws to the extent not inconsistent with this Act. | 2025-08-21T16:12:18Z |