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US HR4614

US HR4614
Franchisee Freedom Act


summary

Introduced
07/22/2025
In Committee
07/22/2025
Crossed Over
Passed
Dead

Introduced Session

119th Congress

Bill Summary

A BILL To provide a private right of action for persons harmed by violations of the Franchise Rule of the Federal Trade Commission, and for other purposes.

AI Summary

This bill, known as the Franchisee Freedom Act, establishes a private right of action for individuals harmed by violations of the Federal Trade Commission's Franchise Rule (part 436 of title 16, Code of Federal Regulations). Under the bill, if a franchisor (the company granting a franchise) is found to have violated the Franchise Rule or the bill's provisions, they can be sued by the harmed party in either a federal district court or a state court where the claimant resides. The potential remedies for such a lawsuit include actual damages, equitable relief (such as contract rescission), and reasonable attorneys' fees and costs. Additionally, the bill explicitly protects franchisees' right to associate with other franchisees and participate in trade associations, making it illegal for franchisors to directly or indirectly restrict or retaliate against franchisees for such activities. This legislation aims to provide more legal protection and freedom for franchisees in their relationships with franchisors.

Committee Categories

Justice

Sponsors (5)

Last Action

Referred to the House Committee on the Judiciary. (on 07/22/2025)

bill text


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