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29609 Hon. Dennis J. Kucinich Hon. John Conyers

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29609 Hon. Dennis J. Kucinich Hon. John Conyers November 10, 1999 EXTENSIONS OF REMARKS 29609 of whom I’d just read? Chorus since its displacement from Ukraine in propriate, bipartisan balance between the Curled up on a poncho, 1942. In addition to its mission of carrying the rights of franchisors and franchisees. These the floor for a bed? tradition of the bandura to the 21st century, issues have been the subject of a hearing in I realized the families the Chorus is also charged with preserving its this Judiciary Committee earlier this year, and that I saw this night, past for future generations. The history of the the issues merit action by this Congress. owed their lives to these soldiers Protecting the rights of franchisees is ulti- who were willing to fight. Ukraine Bandurist Chorus can be traced di- rectly to the 12th Archeological Congress in mately about protecting the rights of small Soon round the world, business. They often face enormous odds and the children would play, Kharkiv, Ukraine in 1902. The first profes- and grown-ups would celebrate sional bandurist chorus was formed in Kyiv in a daunting inequality of bargaining power a bight Christmas day. 1918 during the height of the country’s brief when dealing with national franchisors. Unfor- They all enjoyed freedom period of independence. During a time of in- tunately, the law often offers little recourse in each month of the year, creased popularity and resurgence of the the face of great harm. because of the soldiers, Ukrainian arts and culture, the group devel- There is currently no federal law estab- like the one lying here. oped into a professional touring group. Fol- lishing standards of conduct for parties to a I couldn’t help wonder lowing this time of heightened regard, the franchise contract. The Federal Trade Com- how many lay alone, Chorus’ history evolved into a turbulent one. mission rule promulgated in 1979, (16 CFR on a cold Christmas eve The bandurist ideal of God, truth, freedom, § 436), was designed to deter fraud and mis- in a land far from home. and human dignity herald through song were representation in the re-sales process and The very thought under attack by the newly formed Soviet provide disclosure requirements and prohibi- brought a tear to my eye, Union. As a result many of the original mem- tions concerning franchise agreements. The I dropped to my knees FTC maintains, however, that it has no juris- and started to cry. bers of the Ukrainian bandurist Chorus were executed. After years of persecution and ex- diction after the franchise agreement is The soldier awakened and I heard a rough voice, ploitation the Chorus was forced to immigrate signed. ‘‘Santa don’t cry, to Detroit. During a time of devastation and As a result, in the absence of any Federal this life is my choice; uncertainty, Hryhory Kytasty, the long standing regulation, a number of complaints have been I fight for freedom, director acted as a role model and inspiration lodged in recent years, principally stemming I don’t ask for more, to the young bandurists. Kytasty worked hard from the fact that franchisees do not have my life is my god, to further the art of the bandura in the free equal bargaining power with large franchisors. my country, my Corps.’’ world. The concerns include the following: The soldier rolled over Today, the majority of the Chorus members (1) Taking of Property without Compensa- and drifted to sleep, are 2nd and 3rd generation Americans and tion. Franchise agreements generally include a I couldn’t control it, Canadians. Fortified by a whole new genera- covenant not-to-compete that prohibits the I continued to weep. tion of young musicians, the Chorus has cap- franchisee from becoming an independent I kept watch for hours, tivated audiences in major concert halls in the business owner in a similar business upon ex- so silent and still United States, Canada, Europe and Australia piration of the contract. This can appropriate and we both shivered to the franchisor all of the equity built up by from the cold night’s chill. for more than 50 years. The current director of the Ukrainian Bandurist Chorus is Oleh the franchisee without compensation. I didn’t want to leave Mahlay, a recognized prized musician and a (2) Devaluation of Assets. Franchisors often on that cold, dark, night, induce a franchisee to invest in creating a this guardian of honor member of the chorus since 1987. Mahlay, so willing to fight. who hails from Cleveland, Ohio, received a business and then establish a competing out- let in such proximity to the franchisee that the Then the soldier rolled over, bachelor of arts in music history and literature with a voice soft and pure, from Case Western University. He also stud- franchisee suffers economic harm. whispered, ‘‘carry on Santa,’’ ied voice and piano at the Cleveland Institute (3) Restraint of Trade. Most franchise rela- it’s Christmas Day, all is secure.’’ of Music. Mahlay has received numerous ac- tionships mandate that franchisees purchase One look at my watch, colades for his musical abilities and contribu- supplies, furniture, etc. from the franchisor or and I knew he was right tions such as the Kennedy Prize for Creative sources approved by the franchisor. While it ‘‘Merry Christmas my friend, Achievement in Music from Carnegie Mellon may be appropriate for franchisors to exercise and to all a good night.’’ University. He has participated in the Chorus’ some control concerning the products or serv- f two triumphant tours of Ukraine in 1991 and ices offered to franchisees, tying franchisees 1994, and had his premier as a conductor of to certain vendors can cost franchisees mil- IN HONOR OF THE UKRAINIAN the group in 1994. lions of dollars, prevents competition among BANDURIST CHORUS It is truly an honor for me to recognize this vendors, and can have an adverse impact exceptional group. The music of the Ukrainian upon consumers. HON. DENNIS J. KUCINICH Bandurist Chorus is as captivating as it is (4) Inflated Pricing. Many franchise agree- OF OHIO moving and visibly heartfelt. The songs of the ments specify that the franchisor has the right IN THE HOUSE OF REPRESENTATIVES group are full of emotion and stand testimony to enter into contractual arrangements with Tuesday, November 9, 1999 to the ideals of the bandurist. My distinguished vendors who sell goods and services to Mr. KUCINICH. Mr. Speaker, I rise today to colleagues, please join me in honoring the franchisees that are mandated by the fran- congratulate the Ukrainian Bandurist Chorus very special anniversary of the magnificent chise agreement. It has been alleged that on their 50th Anniversary in America. The Ukrainian Bandurist Chorus. these vendors often provide kickbacks and commissions to the franchisor in return for Ukrainian Bandurist Chorus is an all-male mu- f sical ensemble consisting of 20 instrumental- being allowed to sell their products and serv- ists and vocalists. The chorus was originally INTRODUCTION OF THE SMALL ices to a captive market. Instead of passing founded in Kyiv, Ukraine in 1918. The ensem- BUSINESS FRANCHISE ACT OF 1999 these kickbacks and commissions on to the ble relocated in Detroit, Michigan in 1949. This franchisee to reduce their cost of goods sold internationally recognized ensemble has per- HON. JOHN CONYERS, JR. and increase their margin, these payments, it formed at such well-known theaters as Car- OF MICHIGAN is asserted, benefit the franchisor. negie Hall, the Kennedy Center, Bolshoi The- IN THE HOUSE OF REPRESENTATIVES While our nation has enjoyed an unprece- ater, and Massey Hall. In addition, the Ukrain- dented economic boom, it is essential that Tuesday, November 9, 1999 ian Bandurist Chorus has entertained many Congress ensure that prosperity reaches down world figures and personalities with their excit- Mr. CONYERS. Mr. Speaker, today I am to the small businesses that make up the ing programs of folk songs, religious works proud to reintroduce, with my good friend from heart and soul of our economy. We have an and the exotic sounds of the bandura. North Carolina, Mr. COBLE, the Small Business obligation to ensure that the law governing this Three generations of members have passed Franchise Act. This legislation represents hard segment of the economy, which every Amer- through the ranks of the Ukrainian Bandurist work, and a good faith effort to strike an ap- ican patronizes routinely is fair and balanced. VerDate jul 14 2003 09:22 Jul 13, 2004 Jkt 029102 PO 00000 Frm 00013 Fmt 0689 Sfmt 9920 E:\BR99\E10NO9.000 E10NO9.
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