Learn the Facts
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
- 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
Protection from Unjust Terminations
- Current Florida law allows corporate franchisors to terminate 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.
Protections from Unjust Restrictions on Sales & Transfers
- Corporate franchisors now enjoy unlimited power 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 qualifying prerequisites, he or she should be able to transfer or sell the business to them.
Protections from Non-Renewal of their Agreement
- When a business person decides to open a franchised business, it’s for a fixed term – typically, 10 years. After investing, growing, and operating that business in Florida, franchise operators have no certainty they will be renewed by their franchisor at the end of the term even when they have done everything required in the agreement.
- A small business owner doing a good job should be given the opportunity to renew the agreement and continue to operate at their established location in your local community.