Federal Fair Franchise Practices Act

Federal Fair Franchise Practices Act - Prohibits a franchisor or subfranchisor, in connection with the promotion, sale, licensing, performance, enforcement, and termination of any franchise agreement, or of an agreement for any relationship which is represented either orally or in writing to be a franchise, from: (1) engaging in an act, practice, or course of business which operates, or is intended to operate, as a fraud or deceit upon any person; (2) employing unlawful or deceptive acts or practices in the operation of the franchisor's enterprise or method of business; or (3) discriminating among franchisees on the basis of race, sex, religion, disability, or national origin, with exceptions.

Makes it unlawful for a franchisor or subfranchisor to: (1) prohibit a franchisee from obtaining equipment, fixtures, supplies, or services used in the establishment or operation of the franchised business from sources of the franchisee's choosing, with exceptions; (2) terminate or otherwise cancel a franchise prior to its expiration without good cause; (3) prohibit, or enforce a prohibition against, any franchisee from engaging in any business at any location after expiration of a franchise or after termination of the franchise prior to its expiration for good cause; and (4) hinder or prohibit the free association of franchisees for any lawful purpose (including the formation of or participation in any trade association made up of franchisees), discriminate by imposing requirements not imposed on other similarly situated franchisees, or retaliate against any franchisee for membership or participation in a franchisee association.

Sets forth minimum standards of conduct which impose upon: (1) each party to the franchise contract a duty to act in good faith in its performance and enforcement (which obligates a party to a franchise, in making a decision that directly affects the franchise or the business conducted under the franchise, to give fair regard for the interests of the other parties that are likely to be affected by such decision and to refrain from conduct that may impair or injure the right of the other parties to receive the reasonably anticipated benefits of the franchise); (2) the franchisor a duty of due care (and unless a franchisor represents that it has greater skill or knowledge in its undertaking with its franchisees, or conspicuously disclaims that it has skill or knowledge, the franchisor is required to exercise the skill and knowledge normally possessed by franchisors in good standing in the same or similar types of business); and (3) the franchisor a fiduciary duty to its franchisees and obligates the franchisor to exercise the highest standard of care for franchisee interests where the franchisor undertakes to perform bookkeeping, collection, payroll, or accounting services on behalf of the franchisee, and where the franchisor requires franchisees to make contributions to any pooled advertising or promotional fund to be administered or supervised by the franchisor.

Prohibits any franchisor or subfranchisor from requiring: (1) any term or condition in a franchise agreement, or in any agreement ancillary or collateral to a franchise, which violates any provision of this Act; or (2) a franchisee to assent to any disclaimer, waiver, release, stipulation, or other provision which purports to relieve any person from a duty or liability imposed by this Act, except as part of a settlement of a bona fide dispute.

Sets forth limitations on provisions: (1) purporting to waive or restrict rights granted under this Act; and (2) depriving a franchisee of the application and benefits of this Act (or of a franchise law of the State), or of the right to commence certain actions against the franchisor.

Specifies that: (1) compliance with this Act or with an applicable State franchise law may not be waived, excused, or avoided; and (2) evidence of violation of this Act or of such State law shall not be excluded by virtue of an integration clause, any provision of a franchise (or ancillary or collateral) agreement, or any rule of evidence purporting to exclude consideration of matters outside the franchise agreement.

Authorizes: (1) any person injured by a violation of this Act to bring an action against the violator for damages, costs (including attorney fees), and appropriate equitable relief, subject to specified limitations; and (2) any such person, or a person threatened with injury by an impending violation of this Act, to bring an action in U.S. district court to obtain a declaratory judgment that an act or conduct constitutes (or would constitute) a violation of this Act and to enjoin such act or conduct (in which case the court may issue a temporary restraining order or preliminary injunction to protect the public interest by halting a recurring or likely violation).

Specifies that: (1) nothing in this Act shall limit the right of a franchisor and a franchisee to agree to arbitration, mediation, or other nonjudicial resolution of a dispute, subject to certain limitations; (2) this Act preempts State law only to the extent that State law is inconsistent with any provision of this Act; and (3) nothing in this Act shall be interpreted to alter or relieve any franchisor or subfranchisor from the obligation to comply with any State laws (except to the extent inconsistent with this Act) or to preclude a State from enacting any law or regulation that affords greater protection to franchisees.