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AL HB352
Bill
Status
4/4/2019
Primary Sponsor
Connie Rowe
Click for details
AI Summary
HB352 - Protect Alabama Small Businesses Act
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Franchisors prohibited from terminating or refusing to renew franchises except for good cause, with franchisee receiving 90-day cure period after written notice of material noncompliance.
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Upon termination or nonrenewal without good cause, franchisor must repurchase at fair market value the franchisee's inventory, supplies, equipment, and furnishings, or waive noncompete obligations to allow franchisee to continue in business.
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Franchisees may sell, transfer, or assign franchises to qualified buyers meeting franchisor's nondiscriminatory and reasonable standards, with franchisor having 60 days to approve or deny with stated reasons.
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Prohibits fraudulent misrepresentations, unfair advertising requirements, vendor kickbacks, unreasonable noncompete agreements, and restrictions on franchisee association rights.
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Violators subject to civil liability including fair market value damages, attorney fees, court costs, and interest; Class C misdemeanor for scheme violations; Attorney General may seek injunctive relief.
Legislative Description
Protect Alabama Small Businesses Act, regulation of franchisers and representatives in effort to prevent fraud, unfair business practices and abuses on franchisees, penalties
Small Business
Last Action
Pending third reading on day 16 Favorable from Commerce and Small Business
5/2/2019