Franchisee protection bill sent to study group
A legislative committee has recommended further study of a bill that supporters say would increase protections for Maine franchisees from their corporate franchisers.
The Portland Press Herald reported the Joint Standing Committee on Labor, Commerce, Research and Economic Development voted 7-3 to recommend appointing a seven-member committee to study the proposed regulations and determine if they are necessary to keep franchise agreements fair. The paper reported the vote tally, taken during a work session, could change today as two committee members were absent.
Jim Coen, founder of the Maine Franchise Owners Association, told Mainebiz that the bill was a big part of the decision to form the new group to protect a franchisee’s investment. The bill would make it harder for franchisers to end contracts for reasons like failure to meet sales quotas and deviation from pricing, menu and hours of operation. The paper reported the Washington, D.C.-based International Franchise Association opposes the bill, saying it would force franchisers to accept one-sided contracts that only protect the franchisee.
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