Florida is home to more than 40,000 small business locations owned and operated by local franchisees, who provide over 404,000 jobs in the community. These business owners affiliate with nationally known brand names – but they are the ones who choose to take a risk, invest their personal finances, and create opportunities within communities here in Florida.

The Franchisor/Franchisee Relationship

  • Franchisees:
    • Invest hundreds of thousands of dollars in their businesses
    • Employ Floridians
    • Are committed to and support Florida communities
    • Pay sales and property taxes here in Florida
  • Corporate brands
    • Pay none of these taxes
    • Directly employ few workers in Florida
    • Do not risk financial loss from shutting down a local store

Prevent Unjust Terminations

  • Current Florida law allows corporate franchisors to terminate or non-renew a franchise without good cause.
  • This means people can lose their jobs and the local economy suffers just because the corporation made a decision on its own.

Prevent Unjust Restrictions on Sales & Transfers

  • Many corporate franchisors now enjoy unlimited discretion to restrict the sale or transfer of a franchise – even though the franchise is actually being run by the small business owner who operates it.
  • If a local franchisee can identify another person to run the franchise who fulfills the corporate franchisor’s reasonable prerequisites, he or she should be able to transfer or sell the business to them.

Instate Legal Disputes

  • Florida franchise owners should have the right to pursue legal disputes with their franchisor in a Florida court under Florida law.

Requires “Good Faith”

  • This requires that franchisors and franchisees must act in “good faith”
    toward each other in a “commercially reasonable manner.”