Key States Considering Bills To Regulate Franchisors

Four states – California, Massachusetts, Pennsylvania and Maine – are considering laws that would enhance the rights of franchisees by restricting franchisor practices deemed unfair, protecting franchisees’ equity in their business and empowering collective actions by franchisee groups. Pennsylvania, in addition to adding fair dealing and good faith requirements, would require a franchisor to give 120 days notice to franchisees in the proximity of any proposed new location, and introduce criminal penalties for intentional violations of the Responsible Franchise Practices Chapter.