PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the Subcommittee on Economic and Commercial Law.
Congressional Research Service
Version 00 · Introduced in House · Mar 11, 1993
Federal Fair Franchise Practices Act - Prohibits a franchisor or subfranchisor, in connection with the promotion, sale, licensing, performance, enforcement, 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 or deceit upon any person; (2) employing unlawful or deceptive acts or practices in the operation of the franchisor's enterprise or method of business; or (3) discriminating among franchisees on the basis of race, sex, religion, disability, or national origin, with exceptions. Makes it unlawful for a franchisor or subfranchisor to: (1) prohibit a franchisee from obtaining equipment, fixtures, supplies, or services used in the establishment or operation of the franchised business from sources of the franchisee's choosing, with exceptions; (2) terminate or otherwise cancel a franchise prior to its expiration without good cause; (3) prohibit, or enforce a prohibition against, any franchisee from engaging in any business at any location after expiration of a franchise or after termination of the franchise prior to its expiration for good cause; and (4) hinder or prohibit the free association of franchisees for any lawful purpose (including the formation of or participation in any trade association made up of franchisees), discriminate by imposing requirements not imposed on other similarly situated franchisees, or retaliate against any franchisee for membership or participation in a franchisee association. Sets forth limitations regarding the establishment of a new outlet or point of sale in unreasonable proximity to an existing franchise. Establishes minimum standards of conduct which impose upon: (1) each party to the franchise contract a duty to act in good faith in its performance and enforcement; (2) the franchisor a duty of due care; and (3) the franchisor a fiduciary duty to its franchisees and obligates the franchisor to exercise the highest standard of care for franchisee interests when performing bookkeeping, collection, payroll, or accounting services for the franchisee and when requiring franchisees to make contributions to any pooled advertising or promotional fund. Sets forth limitations regarding franchise and related agreements. Creates a private right of action for violations of this Act.
People & committees
Rep. LaFalce, John J. [D-NY-29] · D–NY
Legislative record
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Referred to the Subcommittee on Economic and Commercial Law.
Referred to the House Committee on Judiciary.
Sponsor introductory remarks on measure. (CR E593-596)
Introduced in House
Introduced in House
Primary sources
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Source last updated: Aug 26, 2025. Consult Congress.gov for the current record.
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