Florida needs similar legal protections for Franchisees…
“The Bush family spent nearly three decades building a successful small business in rural Elmore County. Twenty-six years ago, Darrel Bush’s parents purchased a Huddle House franchise and began the grueling task of opening a new restaurant. The restaurant grew into a success and, as they became ready, the next generation of the Bush family joined the business. Two generations of a single family were living the American Dream until the Huddle House corporation decided they wanted the profits that the Bush’s were making for themselves – cut out the small business owners that built the Huddle House name in Wetumpka.
Once the corporation had their eyes set on the Bush’s business, they used corporate bullying to drive the Bush’s out of business so that the corporation could build a company-owned Huddle House just a mile down the road. Alabama law had no protections for the Bush family and they lost the dream they had devoted their lives to achieving.
Unfortunately, the Bush family is not alone. Time after time, Alabama’s small business owners find themselves at the mercy of large out of state corporations due to our state’s weak franchisee protection laws.
Under current statute, the out of state franchisors hold all of the cards while Alabama small business owners are largely powerless to defend themselves. It is not uncommon for these franchisors to come back year after year and demand changes to franchise contracts. If the franchisees balk at agreeing to the changes, their businesses are threatened. They are often forced to purchase products at far above the fair market value, forced to make investments of their profits into systems and programs that benefit the corporation, not their small business. If a location gets too successful, they are at risk of being shut down so that a corporate owned store can open up down the street and usurp the profits for the corporation. Often, franchise owners are told that they can’t leave their businesses to their children.
Many Alabama franchisees lives in a constant state of fear.”