Bill > HB0441

This bill establishes protections for franchisees with respect to religious day operation requirements, creating new definitions and legal provisions in Utah's state law. The bill defines key terms like "franchise agreement," "franchisee," and "franchisor," excluding certain industries like automobile dealerships and hotels from its scope. Specifically, the bill prohibits franchisors from unilaterally imposing religious day operation requirements, requiring franchisees to accept such requirements in agreement amendments, or refusing to renew a franchise agreement solely based on a franchisee's refusal to comply with religious operation mandates. These protections do not apply if the original franchise agreement already included such requirements, if the franchisee voluntarily agrees to them during renewal, or when developing additional franchise locations. If a court finds a franchisor has violated these provisions, it may order actual damages, attorney fees, and impose escalating civil penalties: $10,000 for a first violation, $25,000 for a second violation within three years, and $50,000 for subsequent violations within five years. The bill is set to take effect on May 7, 2025, unless approved by a two-thirds majority in the legislature, which would make it effective upon gubernatorial approval or veto override.

Budget and Finance, Business and Industry

https://le.utah.gov/~2025/bills/static/HB0441.html