Franchise ANPR Hotline

April 30, 1997

11:10 a.m.

Hello, my name is Susan Rich. My address is 159 Deer Drive, Lusby, Maryland, (410) 326-4987. I am a member of AFA and a 1995 White House Conference on Small Business delegate from Maryland.

I am concerned about the franchise protection on their contracts. We bought a KFC franchise in 1979. The terms of the contract stated that we had unlimited renewals. In 1989, PEPSICO decided they were writing a new contract and when the current contract came up for renewal, we had to sign their contract which no longer gave us unlimited renewals. We invested our money and time all of those years on the terms of the contract, assuming we could stay in business and then they came along thinking they could just take that right away and "too bad for you." I think that franchisees have to live up to the contract and there's no reason that franchisors should not have to also. Thank you.