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AL HB352

Bill

Status

Introduced

4/4/2019

Primary Sponsor

Connie Rowe

Click for details

Origin

House of Representatives

Regular Session 2019

AI Summary

HB352 - Protect Alabama Small Businesses Act

  • 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.

  • 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.

  • 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.

  • Prohibits fraudulent misrepresentations, unfair advertising requirements, vendor kickbacks, unreasonable noncompete agreements, and restrictions on franchisee association rights.

  • 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

Committee Referrals

Commerce and Small Business4/4/2019

Full Bill Text

No bill text available