Bill · H.R. 4614· House(119-HR-4614)
Franchisee Freedom Act
- Introduced
- 7/22/2025
- Last activity
- 7/22/2025 — Referred to the House Committee on the Judiciary.
- Sponsored by
- Janice Schakowsky
- Cosponsors
- - 4 - 0
- Introduced
- In Committee
What this bill would do
The Franchisee Freedom Act is a bill designed to provide a private right of action for people harmed by violations of the Federal Trade Commission's Franchise Rule. It allows harmed individuals to seek actual damages, equitable relief such as contract rescission, and reasonable attorney's fees. The bill establishes that legal actions can be brought in United States District Courts or state courts where the claimant resides. Additionally, the act prohibits franchisors from restricting franchisees from associating with others or participating in trade associations. This includes a ban on retaliating against franchisees for such associations or participations.
Yes· 3 of 7
Would business owners be better off under this?+8
The bill significantly strengthens the legal position of franchisees against their franchisors.
Does this make it easier to run a small business?+7
The bill provides small business owners (franchisees) with a private right of action to recover damages and legal fees from franchisor violations.
Does this give people more protection from unfair business practices?+6
The bill enhances protections for those entering franchise agreements by allowing for contract rescission and actual damages.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Ability to seek compensation for harm: Under Section 2(a), individuals harmed by violations of part 436 of title 16 of the Code of Federal Regulations or Section 3 can recover actual damages, which provides a way to recover financial losses.
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Contractual protections: Section 2(a)(2) allows for equitable relief, including the rescission of contracts, which could help people exit unfair agreements.
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Legal cost assistance: Section 2(a)(3) provides for the recovery of reasonable attorneys' fees and costs, making it more feasible for people to pursue legal action.
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Protection of association rights: Section 3 prevents franchisors from restricting franchisees from associating with other franchisees or participating in trade associations, ensuring people can organize without facing retaliation.
Potential Negative Impacts for People
- No specific negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+7Improves Consumer Protection+6Improves Union Protections+5
- Demographic And Interest Groups
- Good For Business Owners+8Good For Middle Class Households+4Good For Urban Residents+3
- Governance And Ideology
- Improves Due Process+4
- 9/10/2025
- 2 Cosponsors added.
- 7/22/2025
- Referred to the House Committee on the Judiciary.
- 2 Cosponsors added.
- Introduced in House
Suzanne BonamiciDemocrat · Oregon
Jared HuffmanDemocrat · California
Henry JohnsonDemocrat · Georgia
Deborah RossDemocrat · North Carolina