Bill > HB2590

This bill addresses restrictions on franchisors' purchasing and financial practices by establishing two key protections for franchisees. First, the bill prevents franchisors from forcing franchisees to purchase goods, supplies, inventories, or services exclusively from the franchisor or designated sources if comparable quality alternatives are available from other sources. Franchisors can still publish approved source lists and maintain quality standards by disapproving sources that do not meet their specifications. The requirement does not apply to goods manufactured by the franchisor or bearing the franchisor's trademark. Second, the bill prohibits franchisors from receiving payments, goods, services, or other benefits from businesses that work with franchisees without promptly accounting for and transmitting those benefits to the franchisee, with an exception allowing franchisors to receive compensation for facilitating or enabling transactions. These provisions will apply to new franchise agreements and renewals entered into on or after the effective date of the 2025 Act, providing increased transparency and fairness in franchise relationships by preventing potential economic exploitation of franchisees.

Business and Industry

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2590