Sec. 11. Private right of action
337 words·~2 min read·
/bill/114/hr/3196/ih/section-11A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A franchisee who is injured by a violation or threatened violation of this Act, or of section 436.1 of title 16, Code of Federal Regulations (relating to disclosure requirements and prohibitions concerning franchising and business opportunity ventures) as in effect on the date of the enactment of this Act, may bring a private right of action in any court of appropriate jurisdiction for rescission and restitution, as well as for all damages and maybe awarded injunctive relief against a violation or threatened violation of this Act or such section.
The franchisee shall also be entitled to recover its costs of litigation and reasonable attorney’s fees and expert witness fees, against any entity or person found to be liable for such violation. Every person who directly or indirectly controls a person liable under subsection (a), every partner in a firm so liable, every principal executive officer or director of a corporation so liable, every person occupying a similar status or performing similar functions and every employee of a person so liable who materially aids in the act or transaction constituting the violation is also liable jointly and severally with and to the same extent as such person, unless the person who would otherwise be liable hereunder had no knowledge of or reasonable grounds to know of the existence of the facts by reason of which the liability is alleged to exist.
No action may be commenced pursuant to this section or this Act more than the later of— 5 years after the date on which the violation occurs; or 3 years after the date on which the violation is discovered or should have been discovered through exercise of reasonable diligence. A franchisee may commence a civil action to enforce any provision of this Act within the jurisdiction wherein the applicable franchisee is a resident or where the applicable business is located. The private rights provided for in this section are in addition to and not in lieu of other rights or remedies created by Federal or State law.