The Franchisee Freedom Act would create a private right of action allowing individuals to sue companies that violate the Federal Trade Commission's Franchise Rule. Currently, only the FTC can enforce this rule, which regulates how franchisors must disclose information to potential franchisees. The bill would let harmed franchisees recover actual damages, rescind franchise contracts if appropriate, and collect reasonable attorney fees and court costs from violators. Lawsuits could be filed in federal district courts or state courts where the franchisee resides. This legislation would significantly expand enforcement of franchise disclosure requirements by allowing individual franchisees to pursue their own legal claims rather than relying solely on FTC action.
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