Florida Senate - 2018 COMMITTEE AMENDMENT Bill No. SB 1076 Ì566792MÎ566792 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 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: 47 686.102 Venue; 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.