H.R. 4614 — Franchisee Freedom Act

This section establishes a private right of action against any person who violates the FTC Franchise Rule (16 CFR part 436)—which requires franchisors to provide prospective franchisees a disclosure document at least 14 days before any contract or payment—or section 3 of this Act. A harmed person may recover actual damages, equitable relief (including contract rescission), and reasonable attorneys' fees and costs, with concurrent jurisdiction in the U.S. district court or state court where the claimant resides.

This section prohibits franchisors from restricting, directly or indirectly, a franchisee's right to associate with other franchisees or participate in a trade association, including by retaliating against the franchisee for doing so.