Florida Senate - 2018                        COMMITTEE AMENDMENT
       Bill No. SB 1076
       
       
       
       
       
       
                                Ì566792MÎ566792                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/14/2018           .                                
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       The Committee on Judiciary (Steube) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 686.101, Florida Statutes, is created to
    6  read:
    7         686.101 Sales, transfers, and assignments of franchises.—
    8         (1) A franchisor may not deny the surviving spouse, heir,
    9  or estate of a deceased franchisee or of a deceased person who
   10  controlled a majority interest in the franchise the opportunity
   11  to participate in the ownership of the franchise or franchise
   12  business under a valid franchise agreement for at least 180 days
   13  after the death of the franchisee or the death of a person
   14  controlling a majority interest in the franchise. During that
   15  time, the surviving spouse, heir, or estate of the deceased must
   16  either meet all of the existing reasonable qualifications for a
   17  purchaser of a franchise or must sell, transfer, or assign the
   18  franchise to a person who meets the franchisor’s existing
   19  reasonable qualifications for new franchisees. The rights
   20  granted to the surviving spouse, heir, or estate under this
   21  section are granted subject to the surviving spouse, heir, or
   22  estate of the deceased maintaining all standards and obligations
   23  of the franchise.
   24         (2)(a) A franchisee may sell, transfer, or assign a
   25  franchise, all or substantially all of the assets of the
   26  franchise business, or an interest in the franchise with the
   27  prior written consent of the franchisor. The franchisor’s
   28  consent may not be withheld unless the purchaser, transferee, or
   29  assignee does not meet the qualifications for new or renewing
   30  franchisees described in paragraph (b) or the franchisee and the
   31  purchaser, transferee, or assignee fail to comply with other
   32  reasonable transfer conditions specified in the franchise
   33  agreement.
   34         (b)A franchisor may not prevent a franchisee from selling,
   35  transferring, or assigning a franchise, all or substantially all
   36  of the assets of the franchise business, or an interest in the
   37  franchise to another person if the other person meets the
   38  franchisor’s reasonable qualifications for the approval of new
   39  or renewing franchisees in effect at the time the franchisor
   40  receives notice of the proposed sale, transfer, or assignment.
   41  The franchisor shall make this list of qualifications available
   42  to the franchisee, and the franchisor shall consistently apply
   43  such qualifications to similarly situated franchisees operating
   44  within the franchise brand.
   45         Section 2. Section 686.102, Florida Statutes, is created to
   46  read:
   47         686.102Venue; choice of law.—A provision in a franchise
   48  agreement restricting the venue to a forum outside of this state
   49  or selecting the law of any other state or jurisdiction other
   50  than this state is void with respect to any claim arising under
   51  or relating to a franchise agreement involving a franchisee that
   52  was, at the time of signing, a resident of this state or a
   53  business entity established in this state or involving a
   54  franchise business either operating or planning to be operated
   55  in this state. An agreement between a Florida-based franchisor
   56  and a franchisee with none of these stated connections to this
   57  state is not subject to this section or s. 686.101, regardless
   58  of whether the franchise agreement contains a choice of law
   59  provision selecting this state.
   60         Section 3. This act shall take effect upon becoming a law.
   61  
   62  ================= T I T L E  A M E N D M E N T ================
   63  And the title is amended as follows:
   64         Delete everything before the enacting clause
   65  and insert:
   66                        A bill to be entitled                      
   67         An act relating to franchises; creating s. 686.101,
   68         F.S.; prohibiting a franchisor from denying certain
   69         persons the opportunity to participate in the
   70         ownership of a franchise for at least a specified
   71         period after the death of the franchisee or the death
   72         of a person controlling a majority interest in the
   73         franchise; requiring specified persons to either meet
   74         certain requirements or sell, transfer, or assign the
   75         franchise after the death of the franchisee or the
   76         death of the person controlling a majority interest in
   77         the franchise; authorizing a franchisee to sell,
   78         transfer, or assign a franchise, specified assets, or
   79         an interest in the franchise under certain
   80         circumstances; prohibiting a franchisor from
   81         preventing a franchisee from selling or transferring a
   82         franchise, assets of the franchise business, or an
   83         interest in the franchise under certain circumstances;
   84         requiring the franchisor to make available to the
   85         franchisee and to consistently apply qualifications
   86         for the approval of new or renewing franchises;
   87         creating s. 686.102, F.S.; prohibiting the use of
   88         certain choice of venue and choice of law provisions,
   89         under certain circumstances; providing an effective
   90         date.