SB 0999 Creates compensation agreements between franchisors and franchisees
LR Number:3586S.02I Fiscal Note:3586-02
Committee:Commerce and Environment
Last Action:03/02/04 - Hearing Conducted S Commerce & the Environment Journal page:
Effective Date:August 28, 2004
Full Bill Text | All Actions | Available Summaries | Senate Home Page | List of 2004 Senate Bills
Current Bill Summary

SB 999 - This act directs franchisors to specifiy, in writing, franchisee obligations with regard to preparation, delivery, and warranty service. The franchisor shall compensate the franchisee for required warranty service. A schedule for such compensation shall be provided to the franchisee by the franchisor and include information on parts, work, service and time allowance for work and service.

This act directs franchisors to perform warranty obligations, include the expected date for which replacement parts will be available upon recall orders, and compensate franchisees for the repairs effected by any recalls. This act states that any franchisee claims made be paid within thirty days of their approval from the franchisor. Any claims not specifically disapproved within that time frame are considered approved and payment is to be expected within the thirty-day time frame discussed above. Franchisees shall maintain records of all warranty repairs for two years after a claim has been paid.

This act holds franchisors responsible for compensating franchisees for franchisor-sponsored sales events, promotions or activities. Such claims are to be paid within ten days after their approval from the franchisor.