HARRISBURG, Pa., Oct. 22, 2015 – Pennsylvania-based franchisees testified before the Pennsylvania House Consumer Affairs Committee this week in strong opposition to House Bill 1620. The franchisees were Clint Ehlers, a FASTSIGNS franchisee in Willow Grove, Pa., and Charlie Chase of FirstService Brands, the owner of multiple franchises in Oaks, Pa. Members of the Philadelphia law firm FisherZucker LLC also wrote a letter of opposition to the committee. All spoke on behalf of the International Franchise Association.
Ehler’s explained in testimony that “while the proposals in this bill may appear favorable to franchisees on the surface, their enactment will lead to a host of unintended consequences for small businesses like mine. The bill before you would accomplish the exact opposite of its intended effect. The bill would further complicate and undermine the regulatory system already in place that governs the franchise relationship.”
The bill would harm franchise businesses, which are an important engine of economic growth in the state. The legislation would add ambiguities to otherwise clear business arrangements and unfairly rewrite existing contacts between franchisors and franchisees to impose entirely new and unnecessary government-mandated rules about when those contracts can be terminated or renewed – very basic provisions that are carefully negotiated in advance by both parties.
“Franchises are already significantly regulated and they have thrived within the current environment. More government mandates would breed uncertainty that will stifle the strong job creation that franchise businesses bring to local communities in Pennsylvania,” stated IFA’s Director of State Government Relations & Public Policy Jeff Hanscom.
HB 1620 is now pending in the Pennsylvania legislature.
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About the International Franchise Association
The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.