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78R6007 ATP-D

By:  Isett                                                        H.B. No. 3364



A BILL TO BE ENTITLED

AN ACT

relating to the requirement that certain franchise litigation be 
brought in this state.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 35, Business & Commerce 
Code, is amended by adding Section 35.57 to read as follows:
	Sec. 35.57.  ACTION ON FRANCHISE.  (a)  In this section:                
		(1)  "Franchise" means an oral or written agreement, 
express or implied, that:
			(A)  grants the right to distribute goods or 
provide services under a marketing plan prescribed or suggested in 
substantial part by a franchisor;
			(B)  requires payment, directly or indirectly, of 
a franchise fee to the franchisor or its affiliate; and
			(C)  allows the franchisee's business to be 
substantially associated with the franchisor's trademark, service 
mark, trade name, logotype, advertisement, or other commercial 
symbol of or designation of the franchisor or its affiliate.
		(2)  "Franchisee" means a person to whom a franchise is 
granted.     
		(3)  "Franchisor" means a person who grants a franchise 
to another person.
	(b)  Notwithstanding the terms of any franchise or any other 
law, an action or proceeding brought by a franchisee who is a 
resident of this state against a franchisor must be brought in an 
appropriate forum in this state only, and the law of this state 
applies to the action or proceeding.
	SECTION 2.  This Act takes effect September 1, 2003, and 
applies only to an action or proceeding filed on or after that date.