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. 101 102 Be It Enacted by the Legislature of the State of Florida: 103 104 Section 1. Section 686.101, Florida Statutes, is created to 105 read: 106 686.101 Short 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: 110 686.102 Legislative 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: 127 686.103 Definitions.—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: 218 686.104 Termination 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: 267 686.105 Expiration.— 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: 299 686.106 Sales, 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: 358 686.107 Repurchase 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: 401 686.108 Rights 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: 471 686.109 Unenforceable 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: 481 686.110 Venue; 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: 499 686.111 Arbitration.—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: 511 686.112 Remedies.— 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: 545 686.113 Applicability.— 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.