The Labor, Commerce and Economic Development Committee (LCRED) held a work session yesterday on LD 1458, the Maine Small Business Investment Protection Act. The work session was open to the public, but the Co-Chairs of the Committee decided that comments were not invited from the public, but the committee members and LCRED counsel spoke.
There will be another work session scheduled for January 23rd.
The Chairs of the Committee presented the draft amendment to LD 1458, Calling it LD1458-A that encompasses and includes “Five Principles” that the Co-Chairs feel offer suitable protection to Maine franchise owners, but scaling back LD 1458 into a more focused bill.
LD1458A which was taken from the Maine Auto Dealer Statute. It was the first time the members of the committee or the folks on either side saw LD 1458-A.
The “Five Principals” of LD 1458-A include:
- Freedom of Association (11 States have “Freedom of Association for Franchisees without fear of retribution or retaliation).
- Transfer Protections (7 States have transfer provisions).
- Termination Protections (including notice to cure) (17 States have termination notice protections).
- Good Faith & Fair Dealing (5 States have Good Faith & Fair Dealing clauses, 16 States mention Good Faith, Reasonable, and Fair Dealing in their Statutes).
- Renewal Protections (15 States have renewals protection clauses).
Stay tuned for more information. Or call 207-274-2046 if you have and comments, questions or suggestions.
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Comments by Jim Coen, Executive Director, Maine Franchise Owners Association.
This bill in not s sure thing. But it looks promising that we will get the “5 Principals” passed from the committee.
The 5 Principles are a very good start towards protections for franchise owners in Maine. Getting theses 5 principals passed will make it safer for franchise owners in the State of Maine to build, harvest and perpetuate their equity.Please help us by making a call or two to certain members of the LCRED committee. The calls won’t take long and we could use your help.
Call me to discuss. Jim Coen 207-274-2046