Summary: H.R.2593 — 103rd Congress (1993-1994)All Information (Except Text)

There is one summary for H.R.2593. Bill summaries are authored by CRS.

Shown Here:
Introduced in House (07/01/1993)

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 action which operates as a fraud or deceit upon any person; (2) employing unlawful or deceptive acts or practices; (3) discriminating among franchisees on the basis of race, sex, religion, disability, or national origin, with exceptions; (4) prohibiting a franchisee from obtaining equipment, supplies, or services from sources of the franchisee, with exceptions; (5) terminating a franchise prior to its normal expiration without good cause; (6) prohibiting a franchisee from engaging in another business after the expiration of the franchise; (7) prohibiting the free association of a franchisee for any lawful purpose; or (8) establishing a new outlet or point of sale of good or services similar to that offered by a franchisee and identified by the same trade name used by a franchisee in unreasonably close proximity to such franchisee.

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 under this Act; (4) legal actions brought by persons injured or damaged by a violation of this Act; (5) the right to arbitration or mediation in lieu of a legal action; and (6) the obligation to comply with all applicable State franchising laws to the extent not inconsistent with this Act.