Organizations Bump Heads Over Rhode Island Fair Dealership Act

Blue MauMau:

The Dunkin’ Donuts Independent Franchise Owners, Inc. announced today that they were involved in lobbying to preserve the Rhode Island Fair Dealership Act. The group of independent franchisees worked against lobbying efforts of franchisor Dunkin’ Donuts and the International Franchise Association to eradicate the law.

Rhode Island is the first state since Iowa did so in 1992 to enact franchise relationship legislation, where franchisees (unit owners) are protected on such issues as business termination by their franchisor. This year’s amendment reduced the original law’s termination and cure notice from franchisors to their franchise owners by 30 days.

DDIFO President Mark Dubinsky observes, “This law attempts to level the playing field, as it were, giving franchisees rights to cure certain defaults, thus avoiding contract termination. We hope other states and even the Federal Government will look at the Rhode Island law and realize that passing similar legislation would serve the best interests of all small business owners.”

Read more here.

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