Requires fair business practices in franchises

New York's S 3643, the "Fair Franchising Practices Act," establishes new rules to protect franchisees from unfair business practices by franchisors. It requires franchisors to act in good faith, prohibits unfair terms like liquidated damages clauses, and allows franchisees to source equipment/supplies independently if they meet quality standards. Franchisees gain a legal right to sue for violations, seek damages, or obtain injunctions without needing to post bond for preliminary relief. The law applies to all franchises operating in New York, directly affecting both franchisors (businesses granting franchises) and franchisees (businesses operating under franchise agreements).