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Updates


Members Testify Against Franchise Relationship Legislation in Pennsylvania

The Pennsylvania House Consumer Affairs Committee is considering HB 1620, the unnecessary franchise relationship bill that was considered and withdrawn over the last several legislative sessions. Again, the bill was introduced by Rep. Peter Daley (D) a disgruntled, past franchise operator who now seeks to insert government regulations into franchise agreements.

During the bill hearing, IFA's Jeff Hanscom testified against the bill sighting the unnecessary nature of the flawed bill and the past failed attempts to alter what is already a successful economic engine in the state. Also testifying against the bill was FASTSIGNS franchisee, Clint Ehlers, FirstService Brands President, Charlie Chase, Fisher Zucker attorney, Lane Fisher, and FranNet's, Steve Rosen, all of whom respectively represent the three segments of the franchise industry consisting of a franchisee, franchisor and supplier members.

Echoing Hanscom's testimony, the members reiterated their serious concerns with this bill, Ehlers stating, "The bill's stated purpose is to establish 'responsible franchise practices' and 'protect franchisees from unfair procatices in the sale and operation of franchised businesses.' Hoever, the biill before you would accomplish the complete opposite of its intended effect. The bill would further complicate and undermine the regulatory system already in place that governs franchise relationship with vague language and unreasonable new regulations."

The hearing went well and there was no vote taken on the bill. Proponents of the legislation referenced the recently passed California AB 525 as an example of similar legislation; however, after discussing, debating and educating, members conceded that AB 525 was amending existing law as opposed to creating an entirely new legislative framework like HB 1620 seeks to do.

IFA will continue to monitor and work as a resource to any members of the Committee who might like more information or material on franchising.

Date: 2015-10-27

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