July 22, 2025
Ms. Schakowsky (for herself, Mr. Johnson of Georgia, and Mr. Huffman) introduced the following bill; which was referred to the Committee on the Judiciary
To provide a private right of action for persons harmed by violations of the Franchise Rule of the Federal Trade Commission, and for other purposes.
Section 1. Short title
This Act may be cited as the Franchisee Freedom Act
.
Sec. 2. Private right of action
(a) In general
Notwithstanding any other provision of law, any person found to have committed any violation of part 436 of title 16, Code of Federal Regulations, or section 3 of this Act, shall be liable to any person harmed by such violation for—
(1)
actual damages;
(2)
additional equitable relief, including rescission of any contract and such other equitable relief as a court may find appropriate; and
(3)
reasonable attorneys’ fees and costs.
(b) Jurisdiction and venue
Jurisdiction and venue of a civil action under this section shall be concurrent and may be commenced in—
(1)
the United States District Court in the district in which the claimant resides; or
(2)
in a State court of competent jurisdiction in the State in which the claimant resides.
Sec. 3. Right of Association
A franchisor may not, directly or indirectly, restrict a franchisee from associating with other franchisees or from participating in a trade association, including by retaliating against a franchisee for associating with other franchisees or participating in a trade association.