Viewpoint:
GOP state senator wants to protect businesses.
With all the corporate advertising bombarding us every day, it’s easy to lose sight of the fact that the people who own franchise stores are local small-business men and women. They are our neighbors, folks who scraped together enough of their own money to pursue their dream under the national brand name of a familiar convenience store, restaurant or gym.
Together, these small-business owners provide 404,000 jobs for Floridians and generate $35 billion in annual economic activity. The owners have poured their hearts, their souls and their savings into their businesses — yet they have no real protection if the national corporation decides to drop them as a franchise holder. This is wrong, and must be changed.
That’s why I filed the Protect Florida Small Business Act, a bill setting out legal protections for owners of franchised small businesses in Florida. Our state has about 40,000 franchised small businesses, and the protections in this legislation would foster even more opportunity, more jobs and more economic growth. Here’s what my bill would do: It would protect these small franchise business owners from unjust terminations. Corporations (most from out of state) can currently terminate franchise branches without cause or warning. This creates tremendous financial uncertainty for the small-business owner, whose personal funds went into purchasing and operating their business, and for those who depend on the business for employment or services.
Our local franchise owners will be protected from unjust restrictions on sales and transfers. In a free market, a business owner should be able to sell the business he or she started, funded and managed, especially if the buyer meets company standards. My legislation would support a smallbusiness owner’s ability to seek a return for success.
Franchise business owners would have safeguards from unsubstantiated nonrenewal of their franchise agreements. Franchise agreements are often for 10 years — a decade in which the local business becomes established in the area, creates jobs and builds a relationship with the community. Yet the corporations can refuse to renew an agreement, even if the franchisee has fully complied with their requirements. This is unfair and unjust, and it should be changed.
Almost half the states have legislation to protect their local franchise owners. In fact, Florida already provides these protections to automobile and agricultural business owners. Why shouldn’t our local sandwich-store or hair-salon owners have the same protections?
Many of Florida’s franchise business are where we eat, shop, learn new skills and enjoy ourselves. We need to create a more-balanced approach to encourage our local entrepreneurs to continue investing in their dreams — and in our state’s economic vitality.
With the Protect Florida Small Business Act, we would foster an environment for reliable economic growth, giving our local owners more freedom to conduct their businesses in a way that’s best for them and best for our communities.