Bill > HB2584

This bill addresses unfair franchise fee practices by prohibiting franchisors from imposing or collecting fees that were not originally disclosed in the initial franchise agreement or in the federally required disclosure document. Specifically, the bill prevents franchisors from unilaterally adding new fees that were not part of the original contract or outlined in the mandatory disclosure document required under federal regulations (16 C.F.R. part 436). If a franchisor violates this prohibition, they become liable to the franchisee under existing state law and can be subject to a cease and desist order from the Director of the Department of Consumer and Business Services. The bill applies to new franchises and franchise renewals entered into on or after the effective date of the act, providing protection for franchisees against unexpected financial burdens. This legislation aims to increase transparency and fairness in franchise agreements by ensuring that franchisees are fully aware of all potential fees before entering into or renewing a franchise relationship.

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2584