The Hotel Franchisee Fairness and Market Access Act aims to create a more equitable and transparent relationship between hotel franchisors and franchisees in New Jersey. Key provisions of the bill prohibit franchisors from requiring franchisees to purchase goods or services unrelated to the guest experience without prior written consent. Additionally, franchisors must fully disclose any rebates, commissions, or fees received from vendors based on franchisee purchases, with amounts attributable to franchisees returned within 60 days. The bill also establishes protections for franchisees regarding territorial rights, loyalty program compensation, and restrictions on material changes to franchise agreements without consent.
Furthermore, the bill prohibits franchisors from retaliating against franchisees for utilizing legitimate third-party lodging platforms and limits post-term restrictions on franchisees to a maximum of six months after the termination of a franchise agreement. Franchisees are granted the right to take civil action for violations of the act, seeking injunctive relief, damages, and attorney's fees, while the Attorney General is empowered to enforce the act on behalf of the state. Overall, the legislation seeks to enhance fairness and transparency in the hotel franchising industry while safeguarding the interests of franchisees.