,i #aae? ,,congress #a/ ,session ,h4 ,r4 #dgj ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,janu>y #ab1 #bjag,mr4 ,ellison 7= himself1 ,mr4 ,huffman1 ,mr4 ,cony]s1 & ,ms4 ,mc,collum7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ! ,judici>y ,a ,,bill ,to e/abli% m9imum /&>ds ( fair conduct 9 fran*ise sales & fran*ise bus9ess relation%ips1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,fair ,fran*ise ,act ( #bjag4 7b7 ,table ( cont5ts ,! table ( cont5ts ( ?is ,act is ! foll[+3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,sec4 #b4 ,f9d+s & purpose4 ,sec4 #c4 ,unfair fran*ise practices4 ,sec4 #d4 ,/&>ds ( conduct4 ,sec4 #e4 ,proc$ural fairness4 ,sec4 #f4 ,transf] ( a fran*ise4 ,sec4 #g4 ,r5ewal ( ! fran*ise2 notice4 ,sec4 #h4 ,t]m9ation2 good cause2 notice2 opportunity to cure4 ,sec4 #i4 ,effect ( t]m9ation4 ,sec4 #aj4 ,transf] ( fran*ise by fran*isor4 ,sec4 #aa4 ,private "r ( action4 ,sec4 #ab4 ,scope & applicability4 ,sec4 #ac4 ,def9itions4 ,sec4 #ad4 ,sev]ability4 ,sec4 #ae4 ,/ate attorneys g5]al4 #b4 ,f9d+s & purpose 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,fran*ise bus9esses repres5t a l>ge & gr[+ segm5t ( ! ,nation's retail & s]vice bus9esses & are rapidly replac+ m traditional =ms ( small bus9ess own]%ip 9 ! ,am]ican economy4 7#b7 ,fran*ise bus9esses involve a jo9t ent]prise betwe5 ! fran*isor & fran*isees 9 :i* ea* p>ty has a ve/$ int]e/ 9 ! success ( ! fran*is$ bus9ess4 7#c7 ,mo/ prospective fran*isees lack b>ga9+ p[] & g5]ally inve/ sub/antial am\nts to obta9 a fran*ise bus9ess :5 !y are unfamili> ) op]at+ a bus9ess1 ) ! bus9ess be+ fran*is$1 & ) indu/ry practices 9 fran*is+4 7#d7 ,fran*isees inve/ a sub/antial am\nt ( _! own money1 take loans 7(t5 secur$ by _! own home & retirem5t acc\nts1 & ! ,am]ican taxpay] via loans gu>ante$ by ! ,small ,bus9ess ,adm9i/ration71 & ent] into long-t]m comm]cial leases & o!r obligations = ! fran*ise bus9esses 9 ord] to support !mselves & _! families4 7#e7 ,fran*ise agreem5ts reflect a pr(\nd imbalance ( contractual p[] 9 favor ( ! fran*isor1 & fail to give due reg>d to ! legitimate bus9ess int]e/s ( ! fran*isee1 z a result ( ! fran*isor res]v+ "o-sid$ & p]vasive contractual rights ov] ! fran*ise relation%ip4 7#f7 ,fran*isees may suff] sub/antial f9ancial losses :5 ! fran*isor does n provide tru?ful or complete in=mation reg>d+ ! fran*ise opportunity1 or :]e ! fran*isor does n act 9 good fai? or 9 a comm]cially reasonable mann] 9 ! p]=mance ( ! fran*ise agreem5t4 7#g7 ,unlike inve/m5ts 9 securities1 an inve/m5t 9 a fran*ise may lead to sub/antial additional losses well beyond ! initial capital inve/m5t4 ,unlike employm5t1 due to long-t]m contractual & lease obligations1 fran*isees g5]ally _c simply resign & leave ! fran*is$ bus9ess )\t sub/antial liabilities4 7#h7 ,traditional common law doctr9es h n evolv$ suffici5tly to protect fran*isees adequately f fraudul5t or unfair practices 9 ! sale & op]ation ( fran*ise bus9esses1 & significant contractual & proc$ural re/rictions h d5i$ fran*isees adequate legal rec\rse to protect _! int]e/s 9 su* bus9esses4 7#i7 ,contractual obligations ( ! fran*isee to ! fran*isor may create an environm5t t makes x difficult to pay work]s significantly above m9imum wage or provide reasonable b5efits to work]s4 7#aj7 ,a fran*isee's fre$om to a*ieve a contract negotiat$ at arm's l5g? is greatly limit$ by ! disp>ity ( b>ga9+ p[]1 lack ( consi/5t legal /&>ds1 & o!r factors describ$ above4 ,?is ,act is necess>y to re/ore true fre$om to contract1 & to improve ! liv+ /&>ds ( employees ( fran*ises4 7#aa7 ,! ,f$]al ,gov]nm5t has _h a significant int]e/ 9 regulat+ fran*is+ & has regulat$ fran*is+ = ov] #dj ye>s ?r\gh ! ,f$]al ,trade ,commission & its ,fran*ise ,rule4 7b7 ,purpose ,x is ! purpose ( ?is ,act to-- 7#a7 promote ! compell+ int]e/ ( ! public 9 fair bus9ess relations betwe5 fran*isees & fran*isors2 7#b7 protect fran*isees aga9/ unfair treatm5t by fran*isors1 :o inh]5tly h sup]ior economic p[] & sup]ior b>ga9+ p[] 9 ! negotiation ( ! t]ms & conditions ( ! fran*ise relation%ip2 7#c7 provide fran*isees ) rights & rem$ies 9 addition to ^? exi/+ by contract or common law2 7#d7 gov]n fran*ise agreem5ts1 includ+ any r5ewals or am5dm5ts1 to ! full ext5t consi/5t ) ! ,con/itution ( ! ,unit$ ,/ates2 & 7#e7 create an environm5t t gives fran*isees opportunity to ?rive1 !re=e hav+ ! opportunity to provide bett] wages & b5efits to _! employees4 #c4 ,unfair fran*ise practices 7a7 ,misrepres5tations 9 requir$ disclosure ,9 connection ) any disclosure docum5t1 notice1 or report requir$ by any ,f$]al1 ,/ate1 or local law1 x %all be unlawful = any fran*ise sell]1 ei!r directly or indirectly ?r\gh ano!r p]son-- 7#a7 to-- 7,a7 make an untrue /atem5t ( mat]ial fact2 7,b7 fail to /ate a mat]ial fact2 or 7,c7 fail to /ate any fact :i* w\ld r5d] any requir$ /atem5t or disclosure ei!r untrue or mislead+2 & 7#b7 fail to furni% any prospective fran*isee )-- 7,a7 all in=mation requir$ to be disclos$ by law & at ! "t & 9 ! mann] requir$2 7,b7 a writt5 /atem5t specify+1 prom95tly & 9 n less ?an #ad-po9t type1 :e!r ! fran*ise agreem5t involv$ conta9s a "r to r5ew su* agreem5t2 & 7,c7 hi/orical f9ancial p]=mance data includ+ sales1 exp5ses1 & pr(itability data1 9 ! disclosure docum5t or to make any claim or repres5tation to a prospective fran*isee :e!r orally or 9 writ+1 :i* is inconsi/5t )1 or :i* contradicts1 ! fran*isor's disclosure docum5t4 7b7 ,deceptive & discrim9atory practices ,9 connection ) ! p]=mance1 en=cem5t1 r5ewal1 or t]m9ation ( any fran*ise agreem5t1 x %all be unlawful = a fran*isor or subfran*isor1 ei!r directly or indirectly ?r\gh ano!r p]son1 to d any ( ! foll[+3 7#a7 ,to engage 9 an act1 practice1 c\rse ( bus9ess1 or patt]n ( conduct :i* op]ates z a fraud ^u any p]son4 7#b7 ,to h9d]1 prohibit1 or p5alize 7or ?reat5 to h9d]1 prohibit1 or p5alize71 directly or indirectly1 ! free association ( fran*isees = any lawful purpose1 includ+ ! =mation ( or p>ticipation 9 any trade association made up ( fran*isees or ( associations ( fran*isees4 7#c7 ,to discrim9ate aga9/ a fran*isee by impos+ requirem5ts n impos$ on o!r simil>ly situat$ fran*isees4 7#d7 ,to o!rwise retaliate1 directly or indirectly1 aga9/ any fran*isee = memb]%ip or p>ticipation 9 a fran*isee association4 7#e7 ,to *>ge excessive & unreasonable r5ewal fees4 ,fees %all n be deem$ excessive & unreasonable if !y d n exce$ #ej p]c5t ( ! am\nt ( ! av]age initial fran*ise fee or o!r requir$ paym5ts !n be+ *>g$ to all fran*isees 9 ! m>ket4 7#f7 ,to en=ce a clause or provision 9 a fran*ise agreem5t requir+ ! p>ties to submit to arbitration unless ! p>ties1 ea* be+ repres5t$ by c\nsel1 h volunt>ily ent]$ into an agreem5t aft] ! dispute arises to submit ! dispute to arbitration1 & !n only if ! arbitration is conduct$ at a location reasonably conv5i5t to ! fran*isee2 provid$1 h[ev]1 t ! provisions ( ?is subsection %all n prohibit ! en=ceability ( a clause or provision 9 a fran*ise agreem5t :i* requires ! p>ties to submit to nonb9d+ m$iation conduct$ at a location reasonably conv5i5t to ! fran*isee4 7#g7 ,to t]m9ate1 cancel1 or fail to r5ew a fran*ise = ! failure or refusal ( ! fran*isee to d any ( ! foll[+3 7,a7 ,refusal to take "p 9 any promotional campaign :i* is n reasonable1 implem5t$ 9 good fai?1 & expect$ to promote ! pr(itability ( ! fran*isee's bus9ess4 7,b7 ,failure to meet sales quotas sugge/$ or requir$ by ! fran*isor n expressly set =? 9 ! fran*ise agreem5t4 7,c7 ,failure or refusal to sell any products or s]vices at a price sugge/$ or requir$ by ! fran*isor1 an affiliate ( ! fran*isor1 or any suppli] approv$ by ! fran*isor4 7,d7 ,refusal to keep ! fran*is$ premises op5 & op]at+ dur+ h\rs :i* are unpr(itable to ! fran*isee or to preclude ! fran*isee f e/abli%+ its own h\rs ( op]ation or nonop]ation = ! p]iod betwe5 ! h\rs ( #aj p4m4 & #f a4m41 unless said bus9ess is commonly recogniz$ z an ext5d$ h\r bus9ess or ! initial sign$ fran*ise agreem5t requir$ op]at+ dur+ ^! h\rs4 7,e7 ,refusal to give ! fran*isor or any suppli] f9ancial records ( ! op]ation ( ! fran*ise :i* are n relat$ or unnecess>y to ! p]=mance ( fran*isee's express obligations "u ! fran*ise agreem5t or records unrelat$ to ! fran*ise bus9ess4 7#h7 ,to re/rict a fran*isee f associat+ ) o!r fran*isees or f jo9+1 lead+1 or o!rwise p>ticipat+ 9 a trade or o!r association1 or retaliate aga9/ a fran*isee = engag+ 9 ^! activities4 7#i7 ,to require or prohibit any *ange 9 managem5t ( any fran*ise unless ! requirem5t or prohibition ( ! *ange %all be = good cause1 :i* cause %all be /at$ 9 writ+ by ! fran*isor & be bas$ on violations ( mat]ial1 reasonable & reasonably requir$ express provisions ( ! fran*ise agreem5t4 ,good cause %all include requir+ t managem5t ( ! fran*ise be conduct$ by-- 7,a7 p]sonnel :o h be5 tra9$ 9 ! mann] requir$ ( all fran*ise manag]s 9 ! sy/em2 & 7,b7 p]sonnel :o are legally eligible = employm5t 9 ! ,unit$ ,/ates ( ,am]ica4 7#aj7 ,to impose on a fran*isee by contract1 rule1 or regulation1 :e!r writt5 or oral1 a /&>d ( conduct or p]=mance unless ! fran*isor1 its ag5ts or repres5tatives1 su/a9 ! burd5 ( prov+ ! /&>d to be reasonable1 necess>y1 & uni=mly en=c$ & appli$ ?r\gh\t its sy/em ( fran*isees1 fran*isor-own$ units & lic5sees4 ,! foll[+ are examples ( unreasonable conduct3 7,a7 ,to fail to deal fairly & 9 good fai? or fail to ex]cise due c>e ) a fran*isee or any association or o!r aggregation or incorporation ( fran*isees 9 all bus9ess matt]s1 includ+-- 7i7 propos$ & actual transf] ( ! fran*ise2 7ii7 adm9i/ration ( adv]tis+ funds1 rew>ds programs1 & m>ket+ funds2 & 7iii7 ! int]pretation1 adm9i/ration1 & p]=mance ( fran*ise agreem5ts & area developm5t or t]ritory agreem5ts4 7,b7 ,to sell1 r5t1 or (f] to sell to a fran*isee or require a fran*isee to buy any product or s]vice = m ?an a fair & reasonable price or )\t ! reasonable expectation t ! sale or r5tal transaction itself w be pr(itable = ! fran*isee's bus9ess4 7,c7 ,to discrim9ate betwe5 fran*isees 9 ! *>ges (f]$ or made = royalties1 goods1 s]vices1 equipm5t1 r5tals1 adv]tis+ s]vices1 or 9 any o!r bus9ess deal+1 unless t discrim9ation betwe5 fran*isees-- 7i7 w\ld be necess>y to all[ a p>ticul> fran*isee to fairly meet competition 9 ! op5 m>ket2 7ii7 does n adv]sely affect ! bus9ess ( any exi/+ fran*isee2 & 7iii7 to ! ext5t t ! fran*isor satisfies ! burd5 ( prov+ t any classification ( or discrim9ation betwe5 fran*isees is reasonable1 ! discrim9ation is bas$ on fran*ises grant$ at mat]ially diff]5t times & ! discrim9ation is reasonably relat$ to ! diff]5ce 9 "t or on o!r prop] & ju/ifiable di/9ctions1 & is n arbitr>y or int5d$ to be = ! b5efit ( ! fran*isor at ! exp5se ( any fran*isee4 ,no?+ 9 ?is subsection %all be con/ru$ z grant+ to a fran*isor any "r :i* may be limit$ by any o!r ,/ate or ,f$]al /atute4 7,d7 ,to notify ! fran*isee ( a claim$ brea* ( ! fran*ise agreem5t no lat] ?an #ahj days f ! date ! brea* arises or #ahj days aft] ! fran*isor knew or 9 ! ex]cise ( reasonable c>e %\ld h kn[n ( ! claim$ brea*4 7,e7 ,to require a fran*isee to keep ! fran*is$ premises op5 & op]at+ dur+ h\rs :i* are unpr(itable to ! fran*isee or to preclude ! fran*isee f e/abli%+ its own h\rs ( op]ation or nonop]ation betwe5 ! h\rs ( #aj p4m4 & #f a4m41 unless said bus9ess is commonly recogniz$ z an ext5d$ h\r bus9ess1 or ! initial sign$ fran*ise agreem5t requir$ op]at+ dur+ ^! h\rs4 7,f7 ,to require a fran*isee to include noncompete language 9 employm5t contracts ) its employees4 7,g7 ,to fail to1 )\t *>ge1 make readily available to fran*isees1 & provide a physical copy ( true1 accurate1 & complete copies ( all records & acc\nt+s ( m>ket+1 rew>ds programs1 adv]tis+ funds1 & fees t h be5 paid by fran*isees1 v5dors1 suppli]s1 & lic5sees4 7,h7 ,to impose p]=mance /&>ds on fran*ises unless ! fran*isor proves ! p]=mance /&>ds are reasonable1 necess>y1 & uni=mly en=c$4 7,i7 ,to require or reque/ a fran*isee to ass5t to a release1 assignm5t1 novation1 waiv]1 or e/oppel :i* w\ld prospectively relieve any p]son f liability impos$ by ?is *apt]4 7,j7 ,to require or dem& t a fran*isee pay liquidat$ or o!r po/-t]m9ation damages 9 excess ( ! av]age mon?ly royalty fees paid by ! fran*isee dur+ ! prior #ab full cal5d> mon?s 7or ! %ort] "t t ! fran*is$ location has be5 9 ! sy/em71 multipli$ by ! less] ( #f mon?s or ! numb] ( mon?s rema9+ 9 ! t]m ( ! fran*ise agreem5t4 7,k7 ,to act to accompli%1 ei!r directly or indirectly ?r\gh any p>5t company1 subsidi>y1 affiliate1 or ag5t1 :at w\ld o!rwise be prohibit$ "u ?is *apt] on ! "p ( ! manufactur] or di/ributor4 #d4 ,/&>ds ( conduct 7a7 ,duty ( good fai? 7#a7 ,a fran*ise contract imposes on ea* p>ty !reto a duty to act 9 good fai? 9 its p]=mance & en=cem5t4 7#b7 ,z us$ 9 ?is subsection1 a duty ( good fai? %all-- 7,a7 obligate a p>ty to a fran*ise to d no?+ t w h ! effect ( de/roy+ or injur+ ! "r ( ! o!r p>ty to obta9 & receive ! expect$ fruits ( ! contract2 7,b7 obligate a p>ty to d ev]y?+ requir$ "u ! contract to accompli% ! purposes ( ! contract2 & 7,c7 require hone/y 9 fact & obs]vance ( reasonable /&>ds ( fair deal+ 9 ! trade4 7#c7 ,no provision ( any fran*ise agreem5t1 express or impli$1 %all be int]pret$ or en=c$ 9 su* a way z to obfuscate or avoid a p>ty's duty to act reasonably & 9 good fai? ) ! o!r1 or o!rwise all[ a disp>ate result 9 ! fran*ise relation%ip4 7b7 ,duty ( due c>e 7#a7 ,a fran*ise agreem5t imposes on ! fran*isor a duty ( due c>e4 ,unless a fran*isor repres5ts t x has great] skill or k 9 its und]tak+ ) its fran*isees1 or conspicu\sly disclaims t x has any skill or k1 ! fran*isor is requir$ to ex]cise ! skill & k normally possess$ by fran*isors 9 good /&+ 9 ! same or simil> types ( bus9ess4 7#b7 ,= purposes ( ?is subsection-- 7,a7 ! t]m skill or k means some?+ m ?an ! m]e m9imum level ( skill or k requir$ ( any p]son engag+ 9 a s]vice or bus9ess & involves a special level ( exp]tise-- 7i7 :i* is ! result ( acquir$ le>n+ & aptitude develop$ by special tra9+ & exp]i5ce 9 ! bus9ess to be lic5s$ "u ! fran*ise agreem5t1 or ! result ( ext5sive use & exp]i5ce ) ! goods or s]vices or ! op]at+ sy/em ( su* bus9ess2 7ii7 :i* is ! result ( exp]i5ce 9 organiz+ a fran*ise sy/em & 9 provid+ tra9+1 assi/ance & s]vices to fran*isees2 & 7iii7 :i* a prospective fran*isee w\ld expect 9 reasonable reliance on ! writt5 & oral commitm5ts & repres5tations ( ! fran*isor2 & 7,b7 a fran*isor %all be p]mitt$ to %[ t x contract$ =1 hir$1 or pur*as$ ! exp]tise necess>y to comply ) ! requirem5ts ( ?is subsection & t su* exp]tise 0 incorporat$ 9 ! fran*ise or communicat$ or provid$ to ! fran*isee4 7#c7 ,! requirem5t ( ?is subsection may n be waiv$ by agreem5t or by conduct1 b ! fran*isor may limit 9 writ+ ! nature & scope ( its skill & k1 & ( its und]tak+ ) a prospective fran*isee1 by /at+ t x claims no skill or k 9 a p>ticul> area1 provid$ t no inconsi/5t repres5tation1 :e!r writt5 or oral1 is made to ! prospective fran*isee irrespective ( any m]g] or integration clause 9 ! fran*ise agreem5t4 #e4 ,proc$ural fairness 7a7 ,9 g5]al ,x %all be unlawful = any fran*isor1 ei!r directly or indirectly ?r\gh ano!r p]son1 to-- 7#a7 require any t]m or condition 9 a fran*ise agreem5t1 or 9 any agreem5t ancill>y or collat]al to a fran*ise1 :i* directly or indirectly violates any provision ( ?is ,act2 7#b7 require a fran*isee to ass5t to any disclaim]1 waiv]1 release1 /ipulation1 or o!r provision :i* w\ld purport-- 7,a7 to relieve any p]son f a duty impos$ by ?is ,act1 except z "p ( a settlem5t ( a preexi/+ bona fide dispute2 or 7,b7 to protect any p]son aga9/ any liability to :i* he w\ld o!rwise be subject "u ?is ,act by reason ( willful misfeasance1 bad fai?1 or gross neglig5ce 9 ! p]=mance ( duties1 or by reason ( reckless disreg>d ( obligations & duties "u ! fran*ise agreem5t2 or 7#c7 require a fran*isee to ass5t to any waiv]1 release1 /ipulation1 or o!r provision1 ei!r z "p ( any agreem5t or docum5t relat+ to ! op]ation ( a fran*ise bus9ess1 9 any agreem5t or docum5t relat+ to ! t]m9ation1 cancellation1 =feiture1 repur*ase1 or resale ( a fran*ise bus9ess1 or z a condition = p]mitt+ a fran*isee to leave ! fran*ise sy/em1 :i* w\ld purport to prev5t ! fran*isee f mak+ any oral or writt5 /atem5t relat+ to ! fran*ise bus9ess1 to ! op]ation ( ! fran*ise sy/em1 or to ! fran*isee's exp]i5ce ) ! fran*ise bus9ess4 7b7 ,t]ms ( agreem5t ,any condition1 /ipulation1 provision1 or t]m ( any fran*ise agreem5t1 or any agreem5t ancill>y or collat]al to a fran*ise1 :i* w\ld purport to waive or re/rict any "r grant$ "u ?is ,act %all be void & un5=ceable4 ,no /ipulation or provision ( a fran*ise agreem5t1 or ( an agreem5t ancill>y or collat]al to a fran*ise1 %all-- 7#a7 deprive a fran*isee ( ! application & b5efits ( ?is ,act1 ( any o!r ,f$]al law1 or ( ! law ( any ,/ate 9 :i* ! fran*isee is a resid5t1 or 9 :i* ! fran*isee's place ( bus9ess is locat$2 7#b7 deprive a fran*isee ( ! "r to comm5ce an action aga9/ ! fran*isor = violation ( ?is ,act1 or = brea* ( ! fran*ise agreem5t1 or ( any agreem5t or /ipulation ancill>y or collat]al to ! fran*ise1 9 a c\rt 9 ! ,/ate ( ! fran*isee's pr9cipal place ( bus9ess2 or 7#c7 prev5t a fran*isee f br++ or p>ticipat+ 9 any ( ! foll[+ actions3 7,a7 ,a consolidat$ action or consolidat$ arbitration4 7,b7 ,a mass action or mass arbitration4 7,c7 ,a class action "u ,rule #bc ( ! ,f$]al ,rules ( ,civil ,proc$ure4 7,d7 ,a class arbitration z au?oriz$ by ! ,am]ican ,arbitration ,association ,supplem5t>y ,rules = ,class ,arbitrations4 7,e7 ,a simil> consolidat$1 mass1 or class proce$+ p]missible "u ,/ate or ,f$]al /atutory or common law1 or "u ! rules ( any o!r arbitration association4 7c7 ,no waiv]s ,compliance ) ?is ,act or ) an applicable ,/ate fran*ise law is n waiv$1 excus$1 or avoid$1 & evid5ce ( violation ( ?is ,act or ( su* ,/ate law %all n be exclud$1 by virtue ( an integration clause1 any *oice-(-law1 *oice-(-v5ue or any o!r provision ( a fran*ise agreem5t1 or an agreem5t ancill>y or collat]al to a fran*ise1 ! p>ol evid5ce rule1 or any o!r rule ( evid5ce purport+ to exclude consid]ation ( matt]s outside ! fran*ise agreem5t4 #f4 ,transf] ( a fran*ise 7a7 ,transf] ( int]e/ ,a fran*isee may assign an int]e/ 9 a fran*is$ bus9ess or 9 a fran*ise to a transf]ee provid$ ! transf]ee satisfies ! reasonable qualifications !n g5]ally appli$ by ! fran*isor 9 ! (f] & sale ( fran*ises4 ,= ! purpose ( ?is section1 a reasonable curr5t qualification = a new fran*isee is a qualification bas$ ^u a legitimate bus9ess reason4 ,if ! propos$ transf]ee does n meet ! reasonable curr5t qualifications ( ! fran*isor1 ! fran*isor may refuse to p]mit ! transf]1 provid$ t ! refusal ( ! fran*isor to cons5t to ! transf] is n arbitr>y or caprici\s & ! fran*isor /ates ! gr\nds = its refusal 9 writ+ to ! fran*isee4 7b7 ,notice ,a fran*isee %all give a fran*isor n less ?an #fj days writt5 notice ( a propos$ transf] ( a transf]able int]e/1 & on reque/ %all provide 9 writ+ ! own]%ip int]e/s ( all p]sons hold+ or claim+ an equitable or b5eficial int]e/ 9 ! fran*ise subsequ5t to ! transf] or ! fran*isee1 z appropriate4 7c7 ,cons5t impli$ ,a transf] by a fran*isee is consid]$ to h be5 approv$ #fj days aft] ! fran*isee submits ! reque/ = p]mission to transf] ! fran*ise involv$ unless1 )9 t "t ! fran*isor refuses to cons5t to ! transf] z evid5c$ 9 writ+ 9 accordance ) subsection 7a74 7d7 ,conditions ,a fran*isor may require z a condition ( a transf] t-- 7#a7 ! transf]ee successfully complete a reasonable tra9+ program2 7#b7 a reasonable transf] fee be paid to reimburse ! fran*isor = ! fran*isor's reasonable & actual exp5ses directly attributable to ! transf]2 7#c7 ! transf]r+ fran*isee pay or make reasonable provision to pay any am\nt due ! fran*isor or ! fran*isor's affiliate2 or 7#d7 ! f9ancial t]ms ( ! transf] at ! "t ( ! transf]1 comply ) ! fran*isor's curr5t f9ancial requirem5ts = fran*isees4 7e7 ,prohibit$ conditions ,a fran*isor may n condition its cons5t to a transf] describ$ 9 subsection 7a7 on-- 7#a7 fran*isee's =go+ exi/+ rights o!r ?an ^? conta9$ 9 ! fran*ise agreem5t2 7#b7 a fran*isee's ent]+ into a release ( claims broad] 9 scope ?an a c\nt]p>t release ( claims (f]$ by ! fran*isor to ! fran*isee2 or 7#c7 requir+ ! fran*isee or transf]ee to make1 or agree to make1 capital improvem5ts1 re9ve/m5ts1 or pur*ases 9 an am\nt great] ?an ! fran*isor c\ld h reasonably requir$ "u ! t]ms ( ! fran*isee's exi/+ fran*ise agreem5t4 7f7 ,no additional agreem5t requir$ aft] transf] ,a fran*isee may assign ! fran*isee's int]e/ 9 ! fran*ise = ! unexpir$ t]m ( ! fran*ise agreem5t1 & a fran*isor %all n require ! fran*isee or ! transf]ee to ent] into a fran*ise agreem5t t has diff]5t mat]ial t]ms or f9ancial requirem5ts z a condition ( ! transf]4 7g7 ,public (f]+s ,a fran*isor may n )hold its cons5t to a fran*isee's mak+ a public (f]+ ( its securities )\t good cause if ! fran*isee1 or ! own] ( ! fran*isee's int]e/ 9 ! fran*ise1 reta9s control ov] m ?an #be p]c5t ( ! vot+ p[] z ! fran*isee4 7h7 ,o!r consolidation ,a fran*isor may n )hold its cons5t to a pool+ ( int]e/s1 to a sale or ex*ange ( assets or securities1 or to any o!r bus9ess consolidation among/ its exi/+ fran*isees1 provid$ ! con/itu5ts are ea* 9 mat]ial compliance ) _! respective obligations to ! fran*isor4 7i7 ,occurr5ces n consid]$ transf]s ,! foll[+ occurr5ces %all n be consid]$ transf]s requir+ ! cons5t ( ! fran*isor "u a fran*ise agreem5t1 & a fran*isor %all n impose any fees1 paym5ts1 or *>ges 9 excess ( a fran*isor's co/ to review ! relevant matt]3 7#a7 ,! succession ( own]%ip or managem5t ( a fran*ise ^u ! dea? or disability ( a fran*isee1 or ( an own] ( a fran*ise1 to ! surviv+ sp\se1 heir1 or p>tn] active 9 ! managem5t ( ! fran*ise unless ! successor objectively fails to meet )9 #a ye> ! !n curr5t reasonable qualifications ( ! fran*isor = fran*isees4 7#b7 ,incorporation ( a proprietor%ip fran*isee1 provid$ t ! fran*isor may require a p]sonal gu>antee by ! fran*isee ( obligations relat$ to ! fran*ise4 7#c7 ,a transf] )9 an exi/+ own]%ip gr\p ( a fran*ise provid$ t m ?an #ej p]c5t ( ! fran*ise is held by p]sons :o meet ! fran*isor's reasonable curr5t qualifications = fran*isees4 ,if less ?an #ej p]c5t ( ! fran*ise w\ld be own$ by p]sons :o objectively meet ! fran*isor's reasonable curr5t qualifications1 ! fran*isor may refuse to au?orize ! transf]4 7#d7 ,a transf] ( less ?an a controll+ int]e/ 9 ! fran*ise to ! fran*isee's sp\se or *ild or *ildr51 provid$ t m ?an #ej p]c5t ( ! entire fran*ise is held by ^? :o meet ! fran*isor's reasonable curr5t qualifications4 ,if less ?an #ej p]c5t ( ! fran*ise w\ld be own$ by p]sons :o objectively meet ! fran*isor's reasonable curr5t qualifications1 ! fran*isor may refuse to au?orize ! transf]4 7#e7 ,a grant or ret5tion ( a security int]e/ 9 ! fran*is$ bus9ess or its assets1 or an own]%ip int]e/ 9 ! fran*isee1 if ! security agreem5t e/abli%es an obligation on ! "p ( ! secur$ p>ty en=ceable by ! fran*isor to give ! fran*isor1 simultane\sly ) notice to ! fran*isee1 notice ( ! secur$ p>ty's int5t to =eclose on ! collat]al1 & a reasonable opportunity to r$eem ! int]e/ ( ! secur$ p>ty & recov] ! secur$ p>ty's int]e/ 9 ! fran*ise or fran*is$ bus9ess by satisfy+ ! secur$ obligation4 7#f7 ,a fran*isor may n ex]cise any purport$ "r ( fir/ refusal or "r to pur*ase ) reg>d to any fran*ise1 or int]e/ or assets ( a fran*isee1 ^u ! happ5+ ( any ev5t describ$ 9 p>agraphs 7#a7 ?r\gh 7#e74 7j7 ,c]ta9 cov5ants un5=ceable ,aft] ! transf] ( a transf]or's complete int]e/ 9 a fran*ise1 a fran*isor may n en=ce aga9/ ! transf]or any cov5ant ( ! fran*ise agreem5t purport+ to prohibit ! transf]or f engag+ 9 any lawful occupation or ent]prise4 ,?is subsection %all n limit ! fran*isor f en=c+ a contractual cov5ant aga9/ ! transf]or n to exploit ! fran*isor's trade secrets or intellectual prop]ty rights 7includ+ protection ( trade dress7 except by agreem5t ) ! fran*isor4 #g4 ,r5ewal ( ! fran*ise2 notice 7a7 ,9 g5]al ,a fran*isor %all n1 directly or ?r\gh an (fic]1 ag5t1 or employee1 fail to r5ew a fran*ise1 except = good cause %[n4 7b7 ,fees ,r5ewals %all n be subject to unreasonable fees4 ,fees %all n be deem$ unreasonable if !y d n exce$ #ej p]c5t ( ! am\nt ( ! av]age initial fran*ise fee or o!r requir$ paym5ts !n be+ *>g$ to all fran*isees4 7c7 ,good cause = nonr5ewal ,good cause z describ$ 9 subsection 7a7 %all be bas$ ^u legitimate bus9ess reason :i* %all include1 ! fran*isee's refusal or failure to sub/antially comply ) any mat]ial1 reasonable & reasonably necess>y express obligation ( ! fran*ise agreem5t )9 ! #a-ye> p]iod prior to r5ewal1 includ+ repeat$ & int5tional nonpaym5t ( royalties1 adv]tis+ or m>ket+ fees cle>ly requir$ by ! fran*ise agreem5t4 7d7 ,notice ( nonr5ewal ,be=e nonr5ewal ( ! fran*ise1 ! fran*isor %all give ! fran*isee writt5 notice at lea/ #ij days 9 advance ( ! nonr5ewal4 ,! notice %all /ate all ( ! reasons con/itut+ good cause = ! nonr5ewal & %all provide t ! fran*isee has #fj days 9 :i* to rectify any claim$ discrepancy & re9/ate its "r to r5ew ! fran*ise4 7e7 ,pres]vation ( fees ,if ! fran*isor requires ! fran*isee to sign a new fran*ise agreem5t z a condition ( r5ewal1 su* fran*ise agreem5t %all conta9 ! same royalties1 adv]tis+ fees1 & o!r fees z ! expir+ agreem5t1 no new fees & any protect$ t]ritory 9 ! expir+ agreem5t %all be ! same 9 ! r5ewal fran*ise4 7f7 ,prohibit$ actions ,a fran*isor %all n prohibit1 or en=ce a prohibition aga9/1 any fran*isee f-- 7#a7 engag+ 9 any bus9ess at any location aft] expiration ( a fran*ise agreem5t2 or 7#b7 us+ ! cu/om] li/ & telephone numb]s associat$ ) ! fran*ise bus9ess4 7g7 ,rule ( con/ruction ,no?+ 9 ?is subsection %all be int]pret$ to prohibit en=cem5t ( any provision ( a fran*ise contract obligat+ a fran*isee aft] expiration or t]m9ation ( a fran*ise-- 7#a7 to cease or refra9 f us+ a tradem>k1 o!r trade secret1 or o!r intellectual prop]ty own$ by ! fran*isor or its affiliate2 7#b7 to alt] ! appe>ance ( ! bus9ess premises s t x is n sub/antially simil> to ! /&>d design1 decor crit]ia1 trade dress or motif 9 use by o!r fran*isees us+ ! same "n or tradem>ks )9 ! proximate trade or m>ket area ( ! bus9ess2 or 7#c7 to modify ! mann] or mode ( bus9ess op]ations s z to avoid any sub/antial confusion ) ! mann] or mode ( op]ations :i* are unique to ! fran*isor & commonly 9 practice by o!r fran*isees us+ ! same "n or tradem>ks )9 ! proximate trade or m>ket area ( ! bus9ess4 #h4 ,t]m9ation2 good cause2 notice2 opportunity to cure 7a7 ,9 g5]al ,a fran*isor %all n1 directly or ?r\gh an (fic]1 ag5t1 or employee1 t]m9ate or cancel a fran*ise1 or sub/antially *ange ! competitive circum/ances ( ! fran*isee1 except = good cause %[n4 7b7 ,default provisions ,a default "u "o fran*ise agreem5t %all n 9 & ( itself con/itute a default "u ano!r fran*ise agreem5t to :i* ! fran*isee or an affiliate ( ! fran*isee is a p>ty4 ,any cross-default provisions are null & void4 7c7 ,notice ,prior to t]m9ation or cancellation ( ! fran*ise1 ! fran*isor %all give ! fran*isee writt5 notice at lea/ #ij days 9 advance ( ! t]m9ation4 ,! notice %all /ate all ( ! reasons con/itut+ good cause = t]m9ation or cancellation & %all provide t ! fran*isee has #fj days 9 :i* to rectify any claim$ defaults4 7d7 ,exception to notice requirem5t ,! requirem5t = #ij days advance writt5 notice = t]m9ation %all n apply if ! reason = t]m9ation is because-- 7#a7 ! alleg$ gr\nds are volunt>y ab&onm5t by ! fran*isee ( ! fran*ise relation%ip1 9 :i* ev5t1 su* notice may be giv5 #ae days 9 advance ( ! t]m9ation or cancellation2 or 7#b7 ! conviction ( ! fran*isee 9 a c\rt ( compet5t jurisdiction ( an (f5se1 :]e ! conviction is no long] appealable & ! (f5se is-- 7,a7 puni%able by a t]m ( imprisonm5t 9 excess ( #a ye>2 7,b7 directly relat$ to ! bus9ess conduct pursuant to ! fran*ise2 or 7,c7 mat]ially impairs ! goodwill value ( ! fran*ise or ! fran*is$ tradem>k4 ,9 t ev5t1 su* notice may be giv5 at any "t foll[+ ! date on :i* ! conviction is no long] appealable & %all be effective ^u deliv]y & writt5 receipt ( ! notice4 ,9 no ev5t %all any fran*isor collect any f9ancial p5alty or fee1 h[ev] del9eat$1 z a consequ5ce ( su* conviction4 7e7 ,additional notice ,if ! reason = t]m9ation or cancellation is nonpaym5t ( sums due "u ! fran*ise agreem5t1 ! fran*isee %all be entitl$ to writt5 notice ( su* default1 & %all h #ae days 9 :i* to cure su* default f ! date ( su* notice4 ,= su* nonpaym5t defaults a fran*isee has ! "r to cure #c times 9 any #ab-mon? p]iod dur+ ! p]iod ( ! fran*ise agreem5t4 7f7 ,notice ( imm95t dang] ,if ! reason = t]m9ation or cancellation is violation ( any law or regulation relat+ to an imm95t dang] to public heal? or safety ! fran*isee %all be entitl$ to imm$iate writt5 notice & %all h #bd h\rs foll[+ receipt ( su* notice to cure su* violation4 7g7 ,good cause ,a fran*isee may t]m9ate a fran*ise agreem5t = good cause %[n1 )\t any fur!r liability to ! fran*isor4 ,good cause %all include *anges to ! fran*ise sy/em or ! competitive circum/ances ( ! fran*ise bus9ess1 :i* w\ld cause sub/antial negative impact or sub/antial f9ancial h>d%ip to ! fran*isee 9 ! op]ation ( its fran*ise4 #i4 ,effect ( t]m9ation 7a7 ,9 g5]al ,^u t]m9ation ( a fran*ise = :atev] cause or reason1 except volunt>y rel9qui%m5t or ab&onm5t ( ! fran*ise by ! fran*isee or ! expiration ( ! fran*ise agreem5t :]e ! fran*isee does n elect to r5ew1 ! fran*isor %all fairly comp5sate ! fran*isee or fran*isee's e/ate = ! fair m>ket value at ! "t ( t]m9ation ( ! fran*ise1 ( ! fran*isee's inv5tory1 supplies1 equipm5t1 & furni%+s pur*as$ by ! fran*isee f ! fran*isor or its approv$ s\rces & ! fair m>ket value ( ! go+ conc]n value & good w ( ! bus9ess1 if any1 exclusive ( p]sonaliz$ items :i* h no value to ! fran*isor & inv5tory1 supplies1 equipm5t1 & furni%+s n reasonably requir$ 9 ! conduct ( ! fran*ise bus9ess2 provid$1 h[ev]1 t-- 7#a7 comp5sation ne$ n be made to fran*isee ( go+ conc]n value & good w if ! fran*isor agrees 9 writ+ n to en=ce a cov5ant :i* re/ra9s ! fran*isee f compet+ ) ! fran*isor 9 ! same or sub/antially simil> bus9ess 9 ! same or sub/antially simil> mann] at ! same location us+ ! same prop]ty except ! fran*isor's regi/]$ tradem>k or trade "n2 & 7#b7 a fran*isor may (fset aga9/ am\nts ow$ to a fran*isee "u ?is subsection any am\nt mutual agre$ ^u & ow$ by ! fran*isee to fran*isor :i* is n ! subject ( a good fai? dispute by ! fran*isee4 7b7 ,rule ( con/ruction ,! provisions ( ?is section %all n be con/ru$ to p]mit ! t]m9ation or nonr5ewal ( any fran*ise agreem5t except 9 accordance ) ! express t]ms ( ! fran*ise agreem5t & ?is ,act4 #aj4 ,transf] ( fran*ise by fran*isor ,a fran*isor %all n transf]1 by sale or o!rwise1 its int]e/ 9 a fran*ise sy/em unless-- 7#a7 ! fran*isor provides1 n less ?an #cj days be=e ! effective date ( transf]1 notice to e fran*isee ( ! int5t to transf] ! fran*isor's int]e/ 9 ! fran*ise or ( sub/antially all ( ! fran*ises held by ! fran*isor2 7#b7 su* notice is accompani$ by a complete description ( ! bus9ess & f9ancial t]ms ( ! propos$ transf] or transf]s2 & 7#c7 ^u ! transf]1 ! entity assum+ ! fran*isor's obligations has ! bus9ess exp]i5ce & f9ancial means to adequately p]=m all ( ! fran*isor's obligations 9 ! ord9>y c\rse ( bus9ess4 #aa4 ,private "r ( action 7a7 ,9 g5]al ,a fran*isee :o is injur$ by a violation or ?reat5$ violation ( ?is ,act1 or ( section #dcf4a ( title #af1 ,code ( ,f$]al ,regulations 7relat+ to disclosure requirem5ts & prohibitions conc]n+ fran*is+ & bus9ess opportunity v5tures71 z 9 effect on ! date ( ! enactm5t ( ?is ,act1 may br+ a private "r ( action 9 any c\rt ( appropriate jurisdiction = rescission & re/itution1 z well z = all damages & maybe aw>d$ injunctive relief aga9/ a violation or ?reat5$ violation ( ?is ,act or su* section4 ,! fran*isee %all also be entitl$ to recov] its co/s ( litigation & reasonable attorney's fees & exp]t witness fees1 aga9/ any entity or p]son f\nd to be liable = su* violation4 7b7 ,liability ,e p]son :o directly or indirectly controls a p]son liable "u subsection 7a71 e p>tn] 9 a firm s liable1 e pr9cipal executive (fic] or director ( a corporation s liable1 e p]son occupy+ a simil> /atus or p]=m+ simil> functions & e employee ( a p]son s liable :o mat]ially aids 9 ! act or transaction con/itut+ ! violation is also liable jo9tly & sev]ally ) & to ! same ext5t z su* p]son1 unless ! p]son :o w\ld o!rwise be liable h]eund] _h no k ( or reasonable gr\nds to "k ( ! exi/5ce ( ! facts by reason ( :i* ! liability is alleg$ to exi/4 7c7 ,/atute ( limitations ,no action may be comm5c$ pursuant to ?is section or ?is ,act m ?an ! lat] (-- 7#a7 #e ye>s aft] ! date on :i* ! violation occurs2 or 7#b7 #c ye>s aft] ! date on :i* ! violation is discov]$ or %\ld h be5 discov]$ ?r\gh ex]cise ( reasonable dilig5ce4 7d7 ,v5ue ,a fran*isee may comm5ce a civil action to en=ce any provision ( ?is ,act )9 ! jurisdiction :]e9 ! applicable fran*isee is a resid5t or :]e ! applicable bus9ess is locat$4 7e7 ,cumulative "r ,! private rights provid$ = 9 ?is section are 9 addition to & n 9 lieu ( o!r rights or rem$ies creat$ by ,f$]al or ,/ate law4 #ab4 ,scope & applicability 7a7 ,prospective application ,except z provid$ 9 subsection 7b71 ! requirem5ts ( ?is ,act %all apply to fran*ise agreem5ts ent]$ into1 am5d$1 ex*ang$1 transf]r$1 assign$1 or r5ew$ aft] ! date ( enactm5t ( ?is ,act4 7b7 ,delay$ effect ,! requirem5ts ( section #c ( ?is ,act %all take effect #ij days aft] ! date ( enactm5t ( ?is ,act & %all apply only to actions1 practices1 disclosures1 & /atem5ts occurr+ on or aft] su* date4 #ac4 ,def9itions ,= purposes ( ?is ,act1 ! foll[+ def9itions apply3 7#a7 ,! t]m affiliate has ! mean+ giv5 ! t]m affiliat$ p]son 9 section #dcf4a7;b7 ( title #af ( ! ,code ( ,f$]al ,regulations z 9 effect on ,july #a1 #bjjg4 7#b7 ,! t]m disclosure docum5t means ei!r ! disclosure /atem5t requir$ by ! ,f$]al ,trade ,commission 9 ,trade ,regulation ,rule #dcf 7#af ,c4,f4,r4 #dcf7 z am5d$ f "t to "t1 or any (f]+ =mat all[$ or requir$ by ,/ate or local law4 7#c7 ,! t]m fran*ise has ! mean+ giv5 su* t]m 9 section #dcf4a7;h7 ( title #af ( ! ,code ( ,f$]al ,regulations z 9 effect on ,july #a1 #bjjg1 b does n include any contract o!rwise regulat$ by ! ,f$]al ,petroleum ,m>ket+ ,practices ,act 7#ae ,u4,s4,c4 #bhja et seq47 except z to fran*ise relation%ips t d n involve ! sale ( petroleum products4 7#d7 ,! t]m fran*ise sell] has ! mean+ giv5 su* t]m 9 section #dcf4a7;j7 ( title #af ( ! ,code ( ,f$]al ,regulations z 9 effect on ,july #a1 #bjjg4 7#e7 ,! t]m fran*isee has ! mean+ giv5 su* t]m 9 section #dcf4a7;i7 ( title #af ( ! ,code ( ,f$]al ,regulations z 9 effect on ,july #a1 #bjjg4 7#f7 ,! t]m fran*isor has ! mean+ giv5 su* t]m 9 section #dcf4a7k7 ( title #af ( ! ,code ( ,f$]al ,regulations z 9 effect on ,july #a1 #bjjg4 7#g7 ,! t]ms mat]ial & mat]ial fact include-- 7,a7 any fact1 circum/ance1 or set ( conditions :i* a reasonable fran*isee or a reasonable prospective fran*isee w\ld consid] important 9 mak+ a significant decision relat+ to ent]+ into1 rema9+ 91 or ab&on+ a fran*ise relation%ip2 & 7,b7 any fact1 circum/ance1 or set ( conditions :i* has1 or may h1 any significant f9ancial impact on a fran*isor1 fran*isee1 or a prospective fran*isee4 7#h7 ,! t]m (f] or (f]+ means any ef=t to (f] or to dispose (1 or solicitation ( an (f] to buy1 a fran*ise or int]e/ 9 a fran*ise = value4 7#i7 ,! t]m outlet means a po9t ( sale1 tempor>y or p]man5t1 fix$ or mobile1 f :i* goods or s]vices are (f]$ = sale4 7#aj7 ,! t]m p]son means ei!r an individual or any o!r legal or comm]cial entity4 7#aa7 ,! t]m ,/ate means a ,/ate1 ! ,di/rict ( ,columbia1 & any t]ritory or possession ( ! ,unit$ ,/ates4 7#ab7 ,! t]m subfran*ise means a contract or an agreem5t by :i* a p]son pays a fran*isor = ! "r to sell1 negotiate ! sale1 or provide s]vice fran*ises4 7#ac7 ,! t]m subfran*isor means a p]son :o is grant$ a subfran*ise4 7#ad7 ,! t]m trade secret means in=mation1 includ+ a =mula1 patt]n1 compilation1 program1 device1 me?od1 te*nique1 or process1 t-- 7,a7 d]ives indep5d5t economic value1 actual or pot5tial1 f n be+ g5]ally kn[n to1 & n be+ readily asc]ta9able by prop] means by1 o!r p]sons :o c obta9 economic value f its disclosure or use2 & 7,b7 is ! subject ( ef=ts t are reasonable "u ! circum/ances to ma9ta9 its secrecy4 7#ae7 ,! t]ms nonr5ewal & nonr5ew mean t ! fran*isor fails or refuses to ext5d ! fran*isor-fran*isee relation%ip at ! end ( ! exi/+ t]m ( ! fran*ise agreem5t1 irrespective ( :e!r ! fran*ise agreem5t conta9s any contractual "r to obta9 a r5ewal t]m4 ,all[+ a fran*ise agreem5t ) no r5ewal t]m to expire %all be consid]$ to be a nonr5ewal = purposes ( ?is ,act4 #ad4 ,sev]ability ,if any provision or clause ( ?is section or any application ( ?is section to any p]son or circum/ances is held invalid1 su* invalidity %all n affect o!r provisions or applications ( ! section :i* c be giv5 effect )\t ! invalid provision or application1 & to ?is end ! provisions ( ?is section are decl>$ to be sev]able4 #ae4 ,/ate attorneys g5]al 7a7 ,civil action ,:5ev] an attorney g5]al 7or simil> en=cem5t (fic] ( a ,/ate1 h[ev] d5om9at$1 h]e9aft] attorney g5]al7 ( any ,/ate has reason to believe t ! int]e/s ( ! resid5ts ( t ,/ate h be5 or are be+ ?reat5$ or adv]sely affect$ because any p]son has engag$ or is engag+ 9 a patt]n or practice :i* violates any provision ( ?is ,act1 ! ,/ate1 z p>5s patriae1 may br+ a civil action on behalf ( its resid5ts 9 an appropriate ,/ate c\rt or di/rict c\rt ( ! ,unit$ ,/ates to enjo9 su* violations1 to obta9 damages1 re/itution or o!r comp5sation on behalf ( resid5ts ( su* ,/ate or to obta9 su* fur!r & o!r relief z ! c\rt may deem appropriate4 7b7 ,pres]vation ( p[] ,= purposes ( br++ any civil action "u subsection 7a71 no?+ 9 ?is ,act %all prev5t an attorney g5]al f ex]cis+ ! p[]s conf]r$ on ! attorney g5]al by ! laws ( su* ,/ate to conduct inve/igations or to adm9i/] oa?s or affirmations or to compel ! att5dance ( witnesses or ! production ( docum5t>y & o!r evid5ce4 7c7 ,v5ue ,any civil action br\ght "u subsection 7a7 9 a di/rict c\rt ( ! ,unit$ ,/ates may be br\ght 9 ! di/rict 9 :i* ! def5dant is f\nd1 is an inhabitant1 or transacts bus9ess1 or :]ev] v5ue is prop] "u section #acia ( title #bh1 ,unit$ ,/ates ,code4 ,process 9 su* action may be s]v$ 9 any di/rict 9 :i* ! def5dant is an inhabitant or 9 :i* ! def5dant may be f\nd4 7d7 ,no preemption ,no?+ conta9$ 9 ?is section %all prohibit an au?oriz$ ,/ate (ficial f proce$+ 9 ,/ate c\rt on ! basis ( an alleg$ violation ( any civil or crim9al /atute ( su* ,/ate4