Franchisee Freedom Act

The "Franchisee Freedom Act" aims to empower individuals harmed by violations of the Federal Trade Commission's Franchise Rule by creating a private right of action . This provision allows affected persons to sue franchisors for non-compliance with 16 CFR Part 436 or the new right of association established by this Act. Under this right of action, successful claimants can recover actual damages , obtain equitable relief such as contract rescission, and be reimbursed for reasonable attorneys' fees and costs . Civil actions can be filed in either a United States District Court or a State court of competent jurisdiction where the claimant resides. Furthermore, the bill introduces a crucial right of association for franchisees, explicitly prohibiting franchisors from directly or indirectly restricting franchisees from joining or participating in trade associations or associating with other franchisees. It also bans any form of retaliation against franchisees for exercising this right, ensuring their freedom to organize and collaborate.