Bill > S114

This bill, titled the Massachusetts Fair Franchise Act, aims to regulate franchise agreements to protect small businesses by establishing clearer rules and providing greater recourse for franchisees. It defines a franchise as an agreement where a franchisor exerts significant control or provides substantial assistance to a franchisee's business operations, involves the use of the franchisor's trademark, and requires a payment from the franchisee. The act mandates that franchisors must have "good cause," defined as a legitimate business reason, to terminate or refuse to renew a franchise agreement, and requires them to provide advance written notice and an opportunity for the franchisee to correct any issues, with specific exceptions for abandonment or serious criminal convictions. It also prohibits unfair practices by franchisors, such as restricting franchisee associations, imposing unreasonable standards, or discriminating between franchisees, and ensures franchisees can participate in class action lawsuits. Furthermore, the bill requires franchisors to compensate franchisees for the fair market value of their inventory, supplies, and equipment upon termination, and establishes a duty of good faith and fair dealing, as well as a duty of due care, for franchisors. Finally, it specifies that Massachusetts law will govern franchise agreements for businesses located in the Commonwealth and grants franchisees the right to sue for damages and seek injunctive relief for violations, with a four-year statute of limitations for most actions.