Don Sniegowski Reports at Blue MauMau AUGUSTA, Maine – On Wednesday Maine’s state senate voted against Legislative Document 1458, the Small Business I nvestment Protection Act. In a vote of 24 against and only 10 supporting, the senators essentially killed the current form of the bill.
Franchise owners in Maine have complained that their businesses are being stolen or abused by franchisors. They say that under the act, franchisors would be required to provide a 60-day period for a Maine franchise owner to cure a problem before the franchise is terminated by the franchisor. Franchisors prefer the current arrangement where they can terminate a franchise on the spot. The bill would also allow franchisees to leave their business to their spouse, child or chosen successor. Franchisors want to keep their current right to sell the expiring franchise to whomever they want.
“I’ve devoted a year and a half to this,” said one of the bill’s co-sponsors, state senator John Patrick, D-Rumford. “I believe this is the right thing to do at the right time.”