Florida Senate - 2017                              CS for SB 750
       By the Committee on Regulated Industries; and Senators Latvala,
       Lee, and Perry
       580-03445-17                                           2017750c1
    1                        A bill to be entitled                      
    2         An act relating to franchises; creating s. 686.101,
    3         F.S.; providing a short title; creating s. 686.102,
    4         F.S.; providing legislative findings and intent;
    5         providing construction; creating s. 686.103, F.S.;
    6         providing definitions; creating s. 686.104, F.S.;
    7         prohibiting a franchisor from terminating or not
    8         renewing a franchise except under certain
    9         circumstances; providing limitations on what
   10         constitutes good cause; providing that immediate
   11         notice of termination of a franchise for specified
   12         reasons under certain circumstances is reasonable;
   13         creating s. 686.105, F.S.; providing that a franchise
   14         is deemed to be continuing under certain
   15         circumstances; prohibiting a franchisor from allowing
   16         a franchise to expire unless specified criteria have
   17         been met; authorizing a franchisor to require a
   18         franchisee to meet specified requirements; requiring a
   19         franchise and other related agreements to continue in
   20         effect under certain circumstances; creating s.
   21         686.106, F.S.; prohibiting a franchisor from denying
   22         certain persons the opportunity to participate in the
   23         ownership of a franchise for a specified period after
   24         the death of the franchisee or the person controlling
   25         a majority interest; requiring specified persons to
   26         meet certain requirements or to sell, transfer, or
   27         assign the franchise after the death of the franchisee
   28         or the person controlling a majority interest;
   29         authorizing a franchisee to sell, transfer, or assign
   30         a franchise, specified assets, or an interest in the
   31         franchisee under certain circumstances; prohibiting a
   32         franchisor from preventing a franchisee from selling
   33         or transferring a franchise, assets of the franchise
   34         business, or an interest in the franchisee under
   35         certain circumstances; requiring the franchisor to
   36         make available and to apply specified requirements for
   37         the approval of new or renewing franchises under
   38         certain circumstances; requiring a franchisee to
   39         notify a franchisor of certain intent; providing
   40         notice requirements; providing application
   41         requirements for the proposed purchaser, transferee,
   42         or assignee of a franchise, certain assets, or an
   43         interest in the franchisee under certain
   44         circumstances; requiring a franchisor to notify a
   45         franchisee of the approval status of a proposed sale,
   46         assignment, or transfer within a specified timeframe;
   47         providing notice requirements; providing that certain
   48         provisions do not prohibit a franchisor from
   49         exercising a contractual right of first refusal under
   50         certain circumstances; creating s. 686.107, F.S.;
   51         providing that a franchisee must have the opportunity
   52         to monetize certain equity from the franchise business
   53         under certain circumstances; requiring the repurchase
   54         by a franchisor of certain inventory, supplies, goods,
   55         fixtures, equipment, goodwill, and furnishings upon
   56         termination, nonrenewal, or expiration of a franchise
   57         subject to certain requirements; providing
   58         applicability; providing that a franchisor is civilly
   59         liable for failing or refusing to repurchase certain
   60         inventory, supplies, goods, fixtures, equipment,
   61         goodwill, and furnishings under specified requirements
   62         upon termination, nonrenewal, or expiration of a
   63         franchise; creating s. 686.108, F.S.; requiring a
   64         franchisor or subfranchisor and a franchisee to deal
   65         with each other in good faith; prohibiting a person
   66         from intentionally misrepresenting or failing to
   67         disclose specified information; providing that certain
   68         actions are deemed unfair and deceptive; providing
   69         that it is a violation of certain provisions for a
   70         franchisor and subfranchisor to restrict or inhibit
   71         specified rights of franchisees; providing that
   72         certain violations constitute a misdemeanor of the
   73         second degree; providing penalties; providing that a
   74         person may be awarded certain damages, attorney fees,
   75         and other costs under specified circumstances;
   76         authorizing the Department of Legal Affairs by itself
   77         or jointly with the Department of Agriculture and
   78         Consumer Services to sue a franchisor on behalf of
   79         certain persons for specified violations; creating s.
   80         686.109, F.S.; providing that a contract or franchise
   81         agreement is void and unenforceable under certain
   82         circumstances; creating s. 686.110, F.S.; providing
   83         that provisions in a franchise agreement which
   84         restrict venue or choice of law are void under certain
   85         circumstances; creating s. 686.111, F.S.; providing
   86         that the rights of a franchisor and franchisee to
   87         agree to binding arbitration are not limited under
   88         certain circumstances; creating s. 686.112, F.S.;
   89         providing remedies for a franchisee or an aggrieved or
   90         injured person under certain circumstances;
   91         authorizing punitive damages under certain
   92         circumstances; authorizing the Department of Legal
   93         Affairs or the state attorney to bring an action for
   94         injunctive relief or other civil relief under certain
   95         circumstances; clarifying that specified remedies are
   96         in addition to existing remedies; creating s. 686.113
   97         F.S.; providing applicability; amending s. 817.416,
   98         F.S.; providing applicability; providing a directive
   99         to the Division of Law Revision and Information;
  100         providing an effective date.
  102  Be It Enacted by the Legislature of the State of Florida:
  104         Section 1. Section 686.101, Florida Statutes, is created to
  105  read:
  106         686.101Short title.—Sections 686.101-686.113 may be cited
  107  as the “Protect Florida Small Business Act.”
  108         Section 2. Section 686.102, Florida Statutes, is created to
  109  read:
  110         686.102Legislative findings and intent; construction.—
  111         (1)The Legislature finds that the welfare of franchisees,
  112  including the success and failure of their franchise businesses,
  113  greatly affects the general economy of this state, the public
  114  interest, and the public welfare. The intent of the Legislature
  115  is to promote fair business relations between franchisees and
  116  franchisors and to protect franchisees against unfair treatment
  117  by franchisors. Therefore, it is necessary to regulate the
  118  conduct of franchisors and their representatives in order to
  119  prevent fraud, unfair business practices, unfair methods of
  120  competition, impositions, and other abuses upon franchisees in
  121  this state.
  122         (2)In order to promote the intention and policies in this
  123  section, the provisions of this act shall be liberally
  124  construed.
  125         Section 3. Section 686.103, Florida Statutes, is created to
  126  read:
  127         686.103Definitions.—As used in this act, the term:
  128         (1)“Affiliate” means a person controlling, controlled by,
  129  or under common control with another person or, in the case of a
  130  business entity, such entity’s officer, director, or other
  131  person in control of the activities of such entity.
  132         (2)“Area franchise” means a contract or agreement,
  133  expressed or implied, written or oral, regardless of whether the
  134  contract or agreement is designated as a franchise, permit,
  135  license, resolution, contract, certificate, agreement, or
  136  otherwise, between a franchisor and another person through which
  137  that person is granted the right, for consideration in whole or
  138  in part:
  139         (a)To sell or negotiate the sale of a franchise in the
  140  name or on behalf of the franchisor; or
  141         (b)To become an area developer and develop a franchise for
  142  the benefit of that person or that person’s affiliates.
  143         (3)“Area franchisee” means the owner of an area franchise.
  144         (4)(a)“Franchise” or “franchise agreement” means a
  145  contract or agreement, expressed or implied, written or oral,
  146  regardless of whether the contract or agreement is designated as
  147  a franchise, permit, license, resolution, contract, certificate,
  148  agreement, or otherwise, for a definite or indefinite time,
  149  between two or more persons by which:
  150         1.A franchisee is granted the right to engage in the
  151  business of offering, selling, or distributing goods or services
  152  under a marketing plan or system prescribed in substantial part
  153  by a franchisor;
  154         2.The operation of the franchise business pursuant to that
  155  marketing plan or system is substantially associated with the
  156  franchisor’s trademark, service mark, trade name, logotype,
  157  advertising, or other commercial symbol designating the
  158  franchisor or its affiliate; and
  159         3.The franchisee is required to pay, directly or
  160  indirectly, a franchise fee.
  161         (b)The term “franchise” or “franchise agreement” includes
  162  an area franchise.
  163         (c)The term “franchise” or “franchise agreement” does not
  164  include any of the following:
  165         1.A franchise governed by the Agricultural Equipment
  166  Manufacturers and Dealers Act.
  167         2.Any activity governed by ss. 686.501-686.506.
  168         3.A franchise governed by the Outdoor Power Equipment
  169  Manufacturers, Distributors, Wholesalers, and Servicing Dealers
  170  Act.
  171         4.A motor vehicle franchise or agreement governed by ss.
  172  320.3201-320.3211 or ss. 320.60-320.70.
  173         5.A business relationship between a beer distributor and a
  174  manufacturer governed by s. 563.022.
  175         6.A professional sports franchise as described in s.
  176  288.11625(2)(c).
  177         (5)“Franchise business” means a business unit that is
  178  owned or operated by a franchisee and that is subject to a
  179  marketing plan or system prescribed by the franchise.
  180         (6)“Franchise fee” means a fee or charge greater than $100
  181  annually which a franchisee is required to pay or agrees to pay,
  182  directly or indirectly, to the franchisor for the right to enter
  183  into or continue a franchise, including, but not limited to, a
  184  payment for goods or services. However, a fee or charge that a
  185  franchisee pays or agrees to pay the franchisor for goods at a
  186  bona fide wholesale price if no obligation is imposed upon the
  187  franchisee to purchase or pay for a quantity of goods in excess
  188  of that which a reasonable person normally would purchase by way
  189  of a starting inventory or supply or to maintain an ongoing
  190  inventory or supply is not considered a franchise fee.
  191         (7)“Franchisee” means a person to whom a franchise is
  192  offered or granted.
  193         (8)“Franchisor” means a person who grants a franchise to a
  194  franchisee.
  195         (9)“Fraud” means and includes actual fraud or constructive
  196  fraud as normally defined, in addition to the following:
  197         (a)A misrepresentation in any manner, whether
  198  intentionally false or arising from negligence, of a material
  199  fact.
  200         (b)A promise or representation not made honestly and in
  201  good faith.
  202         (c)An intentional failure to disclose a material fact.
  203         (d)Any artifice employed to deceive another.
  204         (10)“Person” means a natural person, corporation, limited
  205  liability company, association, partnership, trust, or other
  206  business entity and, in the case of a business entity, includes
  207  any other affiliate of such entity.
  208         (11)“Sale” means and includes the issuance, transfer,
  209  agreement for transfer, exchange, pledge, hypothecation, or
  210  mortgage in any manner or form, whether by transfer in trust or
  211  otherwise, of any goods or interest therein, or of any franchise
  212  related thereto, for a consideration, and any option,
  213  subscription or other contract, or solicitation, looking to a
  214  sale, or offer or attempt to sell in any form, whether in
  215  written or oral form, for a consideration.
  216         Section 4. Section 686.104, Florida Statutes, is created to
  217  read:
  218         686.104Termination or nonrenewal.—
  219         (1)Except as otherwise provided in this act, a franchisor
  220  may not terminate or refuse to renew a franchise except for good
  221  cause. The termination or nonrenewal of a franchise without good
  222  cause constitutes an unfair termination. Except as provided in
  223  subsection (2), good cause is limited to the failure of the
  224  franchisee to substantially comply with the reasonable and
  225  material requirements imposed upon the franchisee by the
  226  franchise agreement after being given notice at least 90 days in
  227  advance of the termination and a reasonable opportunity, which
  228  may not be less than 60 days after the date of the notice of
  229  noncompliance, to cure the failure. If the franchisee cures the
  230  failure within the time given to cure, the termination notice is
  231  void.
  232         (2)A franchisor may give to a franchisee an immediate
  233  notice of termination without an opportunity to cure if, during
  234  the period in which the franchise is in effect, any one of the
  235  following events relevant to the franchise occurs:
  236         (a)The franchisee has been judicially determined to be
  237  insolvent, has had all or a substantial part of its assets
  238  assigned to or for the benefit of any creditor, or has admitted
  239  its inability to pay its debts as they come due.
  240         (b)The franchisee abandons, by failing to operate, the
  241  franchise business for 10 consecutive days during which, under
  242  the terms of the franchise, the franchisee is required to
  243  operate the franchise business unless such failure to operate is
  244  due to an act of God; a work stoppage; a strike or labor
  245  difficulty; a fire, flood, hurricane, or sinkhole; or other
  246  causes beyond the franchisee’s control.
  247         (c)The franchisor and franchisee, within 30 days after
  248  termination or nonrenewal, agree in writing to terminate the
  249  franchise.
  250         (d)The franchisee fails, for a period of 10 days after a
  251  notice of noncompliance, to comply with any federal, state, or
  252  local law or regulation, including, but not limited to, any
  253  health, safety, building, and labor law or regulation applicable
  254  to the operation of the franchise.
  255         (e)A levy of execution has been made on the license
  256  granted by the franchise or on a property used in the franchise
  257  business and is not discharged within 5 days after such levy.
  258         (f)The franchisee is convicted of a felony that
  259  significantly, directly, and adversely affects the operation of
  260  the franchise business.
  261         (g)The franchisor makes a reasonable determination that
  262  continued operation of the franchise business by the franchisee
  263  will result in imminent and substantial danger to public health
  264  or safety.
  265         Section 5. Section 686.105, Florida Statutes, is created to
  266  read:
  267         686.105Expiration.—
  268         (1)A franchise agreement, regardless of its stated term of
  269  years, is deemed to be continuing unless the franchisor has
  270  complied with subsections (2) and (3).
  271         (2)A franchisor must provide written notice to the
  272  franchisee of the franchisor’s intent not to extend the
  273  agreement beyond its expiration date at least 180 days before
  274  the expiration date unless:
  275         (a)Termination of the franchise agreement is authorized
  276  under s. 686.104;
  277         (b)The franchisor and franchisee agree, before the
  278  agreement’s expiration, in writing not to extend the franchise;
  279  or
  280         (c)The franchisor completely withdraws from directly or
  281  indirectly distributing its products or services in the
  282  geographic market then being served by the franchisee.
  283         (3)The franchisor may permit the franchise agreement to
  284  expire if the franchisor provides written notice 180 days before
  285  the agreement’s expiration, the franchisor agrees not to enforce
  286  any covenant against the franchisee not to compete with the
  287  franchisor or with other franchisees of the franchisor, and the
  288  nonrenewal of the franchise is not for the purpose of converting
  289  the franchise business to operation by an affiliate, employee,
  290  or agent of the franchisor.
  291         (4)As a condition of an extension of the franchise
  292  agreement, the franchisor may require that the franchisee meet
  293  the reasonable qualifications for new franchisees existing at
  294  the time of extension and that the franchisee execute a new
  295  franchise agreement incorporating terms and fees existing for
  296  new franchises at the time of extension.
  297         Section 6. Section 686.106, Florida Statutes, is created to
  298  read:
  299         686.106Sales, transfers, and assignments.—
  300         (1)A franchisor may not deny the surviving spouse, heir,
  301  or estate of a deceased franchisee or of the person controlling
  302  a majority interest in the franchisee the opportunity to
  303  participate in the ownership of the franchise or franchise
  304  business under a valid franchise agreement for at least 180 days
  305  after the death of the franchisee or person controlling a
  306  majority interest in the franchisee. During that time, the
  307  surviving spouse, heir, or estate of the deceased must either
  308  meet all of the existing reasonable qualifications for a
  309  purchaser of a franchise or must sell, transfer, or assign the
  310  franchise to a person who meets the franchisor’s existing
  311  reasonable qualifications for new franchisees. The rights
  312  granted to the surviving spouse, heir, or estate under this
  313  section are granted subject to the surviving spouse, heir, or
  314  estate of the deceased maintaining all standards and obligations
  315  of the franchise.
  316         (2)(a)A franchisee may sell, transfer, or assign a
  317  franchise, all or substantially all of the assets of the
  318  franchise business, or an interest in the franchisee with the
  319  prior written consent of the franchisor. The franchisor’s
  320  consent may not be withheld unless the purchaser, transferee, or
  321  assignee does not meet the qualifications for new or renewing
  322  franchisees described in paragraph (b) or the franchisee and the
  323  purchaser, transferee, or assignee fail to comply with other
  324  reasonable transfer conditions specified in the franchise
  325  agreement.
  326         (b)A franchisor may not prevent a franchisee from selling,
  327  transferring, or assigning a franchise, all or substantially all
  328  of the assets of the franchise business, or an interest in the
  329  franchisee to another person if the other person meets the
  330  franchisor’s reasonable qualifications for the approval of new
  331  or renewing franchises in effect at the time the franchisor
  332  receives notice of the proposed sale, transfer, or assignment.
  333         (3)(a)To invoke the protections under this section, a
  334  franchisee must, before the sale, transfer, or assignment of a
  335  franchise, all or substantially all of the assets of the
  336  franchise business, or an interest in the franchisee, notify the
  337  franchisor in writing of the franchisee’s intent to sell,
  338  transfer, or assign.
  339         (b)The franchisor shall, within 60 days after receipt of
  340  all of the written notice or any shorter period required by the
  341  franchise agreement, notify the franchisee of the approval or
  342  disapproval of the proposed sale, transfer, or assignment. If
  343  the proposed sale, transfer, or assignment is disapproved, the
  344  franchisor must include in the notice of disapproval a statement
  345  specifying the reasons for the disapproval. A proposed sale,
  346  transfer, or assignment is deemed approved unless disapproved by
  347  the franchisor in the manner provided in this paragraph.
  348         (4)This section does not prohibit a franchisor from
  349  exercising the contractual right of first refusal to purchase a
  350  franchise, all or substantially all of the assets of a franchise
  351  business, or an interest in a franchisee after receipt of a bona
  352  fide offer from a proposed seller to purchase the franchise,
  353  assets, or interest. A franchisor exercising the contractual
  354  right of first refusal shall offer the seller payment at least
  355  equal to the value offered in the bona fide offer.
  356         Section 7. Section 686.107, Florida Statutes, is created to
  357  read:
  358         686.107Repurchase of inventory upon termination,
  359  nonrenewal, or expiration of a franchise agreement.—
  360         (1)(a)A franchisee must have the opportunity to monetize
  361  any equity that the franchisee may have developed in the
  362  franchise business before the termination, nonrenewal, or
  363  expiration of the franchise agreement. Equity in the
  364  franchisor’s intellectual property is not transferred to the
  365  franchisee, however. Therefore, upon termination, nonrenewal, or
  366  expiration of a franchise agreement, a franchisor must, if the
  367  franchisee requests it, repurchase at fair market value the
  368  inventory, supplies, goods, fixtures, equipment, and furnishings
  369  of the franchise business. The franchisor must also either
  370  purchase the goodwill of the franchise business or waive any and
  371  all noncompete obligations of the franchisee so that the
  372  franchisee may, at its option, continue in business.
  373         (b)This section does not apply if the franchisee declines
  374  a bona fide offer of renewal from the franchisor which is
  375  consistent with s. 686.105 and the franchise agreement between
  376  the franchisor and franchisee.
  377         (c)This section does not apply if the franchisor and
  378  franchisee agree in writing within 30 days of the termination,
  379  nonrenewal, or expiration of the franchise to terminate or not
  380  renew the franchise, or to allow the franchise to expire.
  381         (d)This section does not apply to inventory, supplies,
  382  goods, fixtures, equipment, or furnishings sold by the
  383  franchisee between the date of the notice of termination,
  384  nonrenewal, or expiration and the date the franchisee ceases to
  385  operate the franchise business pursuant to a termination,
  386  nonrenewal, or expiration.
  387         (2)If a franchisor fails or refuses to repurchase any
  388  inventory, supplies, goods, fixtures, equipment, goodwill, or
  389  furnishings required to be repurchased under subsection (1)
  390  within 60 days after the termination, nonrenewal, or expiration
  391  of a franchise, the franchisor is civilly liable for the entire
  392  value of the inventory, supplies, goods, fixtures, equipment,
  393  goodwill, and furnishings required to be repurchased under
  394  subsection (1), plus the franchisee’s reasonable attorney fees,
  395  court costs, and interest on the inventory, supplies, goods,
  396  fixtures, equipment, goodwill, and furnishings computed at the
  397  legal interest rate provided in s. 687.01 from the 61st day
  398  after termination.
  399         Section 8. Section 686.108, Florida Statutes, is created to
  400  read:
  401         686.108Rights and prohibitions.—The following rights and
  402  prohibitions govern the relations between a franchisor or
  403  subfranchisor and its franchisee:
  404         (1)The parties shall deal with each other in good faith
  405  and in a commercially reasonable manner.
  406         (2)A person may not, during the selling or establishing of
  407  a franchise, intentionally misrepresent or fail to disclose:
  408         (a)The prospects or chances for success of the proposed or
  409  existing franchise;
  410         (b)The known required total investment for such franchise;
  411  or
  412         (c)Any effort to sell or establish more franchises than is
  413  reasonable to expect the market or market area for the
  414  particular franchise to sustain.
  415         (3)It is prohibited and deemed an unfair and deceptive act
  416  or practice, or an unfair method of competition, and a violation
  417  of this section for a franchisor or subfranchisor, or an
  418  officer, agent, employee, or other representative thereof to
  419  directly or indirectly:
  420         (a)Terminate or fail to renew a franchise agreement in
  421  violation of this act;
  422         (b)Allow a franchise agreement to expire without complying
  423  with this act;
  424         (c)Fail to repurchase inventory, supplies, goods,
  425  fixtures, equipment, goodwill, and furnishings in violation of
  426  s. 686.107;
  427         (d)Prevent a sale, transfer, or assignment of a franchise
  428  in violation of s. 686.106;
  429         (e)Violate the Florida Deceptive and Unfair Trade
  430  Practices Act in connection with its business as a franchisor,
  431  or an officer, agent, or other representative thereof;
  432         (f)Resort to or use false or misleading advertising in
  433  connection with its business as a franchisor, or an officer,
  434  agent, or other representative thereof;
  435         (g)Without prior written disclosure to a franchisee,
  436  obtain vendor rebates, kickbacks, or other similar payments from
  437  another person with whom the franchisee does business or employs
  438  on account of or in relation to the transactions between the
  439  franchisee, the franchisor, and the other person;
  440         (h)Require a franchisee to assent to a release,
  441  assignment, novation, waiver, or estoppel that would relieve any
  442  person from liability imposed under this act, including, but not
  443  limited to, through the use of a disclaimer or checklist
  444  designed to avoid a protection under this act;
  445         (i)Require a franchisee to assent to the use of a choice
  446  of law provision by selecting a different state’s law to govern
  447  the relationship of the parties;
  448         (j)Restrict or inhibit, directly or indirectly, the right
  449  of a franchisee to join a franchisee association or the free
  450  association for any lawful purpose among franchisees;
  451         (k)Impose upon a franchisee, by contract or rule, written
  452  or oral, any unreasonable standard of conduct; or
  453         (l)Require a franchisee to waive its rights to a jury
  454  trial or waive any procedure or remedy otherwise available in
  455  this state, however, a binding arbitration clause is enforceable
  456  if it complies with s. 686.111.
  457         (4)A person who executes or carries out a scheme, plan, or
  458  organization that violates any provision of this section, if
  459  knowledge or intent is proved, commits a misdemeanor of the
  460  second degree, punishable as provided in ss. 775.082 and
  461  775.083.
  462         (5)A person who shows in a civil court of law a violation
  463  of this section is entitled to the remedies in s. 686.112.
  464         (6)The Department of Legal Affairs, by itself or jointly
  465  with the Department of Agriculture and Consumer Services, may
  466  sue on behalf of the people of this state for injunctive relief
  467  against any franchisor plan or activity that is in violation of
  468  this act.
  469         Section 9. Section 686.109, Florida Statutes, is created to
  470  read:
  471         686.109Unenforceable franchise agreement or other contract
  472  or part thereof.—A franchise agreement or other contract, a part
  473  thereof, or practice thereunder which is in violation of any
  474  provision of this act is deemed against public policy and is
  475  void and unenforceable. An aggrieved party at its option may
  476  choose to seek to void only the portion of the agreement that is
  477  unenforceable and continue to enforce the remainder of the
  478  agreement.
  479         Section 10. Section 686.110, Florida Statutes, is created
  480  to read:
  481         686.110Venue; choice of law.—
  482         (1)A provision in a franchise agreement restricting the
  483  venue to a forum outside of this state or selecting the law of
  484  any other state or jurisdiction other than Florida is void with
  485  respect to any claim arising under or relating to a franchise
  486  agreement involving a franchisee that was, at the time of
  487  signing, a resident of this state or a business entity
  488  established in this state or involving a franchise business
  489  either operating or planning to be operated in this state.
  490         (2)An agreement between a franchisor based in this state
  491  and a franchisee that was not, at the time of signing, a
  492  resident of this state or a business entity established in this
  493  state or involving a franchise business either operating or
  494  planning to be operated in this state is not subject to this
  495  act, regardless of whether the franchise agreement contains a
  496  choice of law provision selecting this state.
  497         Section 11. Section 686.111, Florida Statutes, is created
  498  to read:
  499         686.111Arbitration.—This act does not limit the right of a
  500  franchisor and franchisee to agree, before or after a dispute
  501  arises, to binding arbitration to settle a claim under this act
  502  if:
  503         (1)The standards applied and the remedies available in the
  504  arbitration are not less than the requirements specified in this
  505  act; and
  506         (2)Each arbitrator employed is chosen from a list of
  507  impartial arbitrators provided by the American Arbitration
  508  Association or is any other impartial person.
  509         Section 12. Section 686.112, Florida Statutes, is created
  510  to read:
  511         686.112Remedies.—
  512         (1)If a franchisor terminates, fails to renew, or allows a
  513  franchise to expire in violation of this act, the franchisee is
  514  entitled to receive from the franchisor the fair market value of
  515  the franchise business and franchise assets in addition to any
  516  other damage caused by the violation.
  517         (2)In addition to any relief specified in this act, any
  518  person aggrieved or injured in his or her business or property
  519  by any violation of this act may bring an action in the
  520  appropriate state or federal court of this state and shall
  521  recover the damages sustained and the costs of such action,
  522  including reasonable attorney fees.
  523         (3)Without regard and in addition to any other remedy or
  524  relief to which a person is entitled, any person aggrieved by a
  525  violation of this act may bring an action to obtain a
  526  declaratory judgment stating that an action or a practice
  527  violates these sections and may obtain injunctive relief
  528  enjoining a franchisor that has violated, is violating, or is
  529  otherwise likely to violate these sections from committing the
  530  violation.
  531         (4)In an action for monetary damages, if a judge or jury
  532  finds that the franchisor acted maliciously, the judge or jury
  533  may award punitive damages as authorized by state law.
  534         (5)The Department of Legal Affairs or the state attorney
  535  may bring an action for injunctive relief or other appropriate
  536  civil relief for a violation of this act if the violation occurs
  537  in the judicial circuit of the department or the state attorney,
  538  respectively.
  539         (6)The remedies provided in this section are in addition
  540  to any other remedies provided by law or in equity, including,
  541  but not limited to, the Florida Deceptive and Unfair Trade
  542  Practices Act.
  543         Section 13. Section 686.113, Florida Statutes, is created
  544  to read:
  545         686.113Applicability.—
  546         (1)Any person or franchisor who engages directly or
  547  indirectly in an agreement or contract within this state in
  548  connection with a franchise, or any franchise whose franchisee
  549  is a resident of this state or is domiciled in this state or
  550  whose franchise business is, has been, or is intended to be
  551  operated in this state, is subject to this act and to the
  552  jurisdiction of the courts of this state, in accordance with the
  553  laws of this state, for violations of this act.
  554         (2)This act applies to:
  555         (a)Any written or oral agreement between a franchisor and
  556  a franchisee, including, but not limited to, a franchise
  557  offering; a franchise agreement; a sale of goods, services, and
  558  advertising; a lease or mortgage of real or personal property; a
  559  promise to pay; a security interest; a pledge; an insurance
  560  contract; an advertising contract; a construction or
  561  installation contract; a servicing contract; and any other
  562  agreement in which the franchisor has a direct or indirect
  563  interest;
  564         (b)Any franchise entered into, renewed, amended, or
  565  revised after the effective date of this act;
  566         (c)Any existing franchise of an indefinite duration which
  567  may be terminated by the franchisee or franchisor without cause;
  568  and
  569         (d)Any existing franchise entered into before the
  570  effective date of this act, only to the extent that this act
  571  does not significantly impair the existing contract rights
  572  between the parties.
  573         (3)This act is supplemental to, and does not preempt,
  574  local ordinances dealing with prohibited or unlawful conduct in
  575  the manufacturing, distribution, wholesaling, advertising, or
  576  sale of goods if such ordinances are not inconsistent with this
  577  act.
  578         (4)This act supersedes s. 817.416 with respect to any
  579  franchisee that signs a franchise agreement on or after the
  580  effective date of this act. Section 817.416 continues to govern
  581  the claims of all franchisees that signed franchise agreements
  582  or were victims of fraud perpetrated before the effective date
  583  of this act, as well as distributors and any other entities,
  584  past, present, or future, which would be covered by s. 817.416,
  585  but not by this act.
  586         Section 14. Subsection (5) is added to section 817.416,
  587  Florida Statutes, to read:
  588         817.416 Franchises and distributorships;
  589  misrepresentations.—
  590         (5)APPLICABILITY.—This section does not apply to a
  591  franchise entered into, renewed, amended, or revised on or after
  592  the effective date of this act. A franchise entered into,
  593  renewed, amended, or revised on or after the effective date of
  594  this act is subject to ss. 686.101-686.113.
  595         Section 15. The Division of Law Revision and Information is
  596  directed to replace the phrase “the effective date of this act”
  597  wherever it occurs in this act with the date the act becomes a
  598  law.
  599         Section 16. This act shall take effect upon becoming a law.