Bill
A 4121
Bill A 4121 mandates franchisors to publicly report franchise fees, consumer complaints, and service denials, enhancing transparency and empowering consumers.
Bill Number: A 4121
Title: Relates to requiring covered entities to publicly report on franchise fees, consumer complaints, and denials of requests for service
Status: Referred to Corporations, Authorities and Commissions
Introduced: January 31, 2025
Classification: Bill
Bill A 4121 aims to enhance transparency and accountability among covered entities, particularly those operating under franchise agreements. The primary intent is to require these entities to publicly disclose specific information regarding their franchise fees, consumer complaints, and instances where requests for service have been denied. This legislation seeks to empower consumers with better information and promote fair practices within the franchise industry.
The bill includes the following significant provisions:
Public Reporting Requirements: Covered entities will be mandated to publicly report:
Frequency of Reporting: The bill specifies how often these reports must be published (details to be determined in subsequent legislative discussions).
Format of Reports: The reports must be made available in a user-friendly format, ensuring accessibility for consumers and stakeholders.
Covered Entities: Franchisors and franchisees will be directly impacted by the new reporting requirements. They will need to allocate resources to compile and publish the required information.
Consumers: The legislation is designed to benefit consumers by providing them with clearer insights into franchise operations, helping them make informed decisions when engaging with franchise businesses.
Regulatory Bodies: State regulatory agencies may need to oversee compliance with the new reporting requirements, potentially leading to increased administrative responsibilities.
Current Status: As of January 31, 2025, the bill has been referred to the Corporations, Authorities and Commissions committee for further consideration.
Related Legislation: Bill A 4121 is related to prior-session Bill A 6199 and has a companion bill, S 2356, which may address similar issues or provide additional context.
Bill A 4121 represents a significant step towards increasing transparency in the franchise sector. By requiring covered entities to publicly report on franchise fees, consumer complaints, and service denials, the legislation aims to protect consumer interests and promote fair business practices. The bill is currently under review, and further developments will determine its progression through the legislative process.
Compiled from official sources — confirm details with the bill’s official record.
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