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Bill > SB376


GA SB376

GA SB376
"Georgia Restaurant Franchise Relations Act"; enact


summary

Introduced
04/04/2025
In Committee
04/04/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

AN ACT To amend Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating to selling and other trade practices, so as to enact the "Georgia Restaurant Franchise Relations Act"; to prohibit a franchisor from terminating a franchise except under certain circumstances; to provide for circumstances which warrant the termination of a franchise; to provide conditions for arbitration; to provide for the renewal of a franchise; to prohibit a franchisor from discriminating against franchise operations over franchisor owned operations; to prohibit forum selection; to provide that a franchisor shall provide an opportunity for the survivor of a deceased franchisee to operate the franchise; to provide for definitions; to provide for penalties; to provide for related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes.

AI Summary

This bill establishes the Georgia Restaurant Franchise Relations Act, which creates comprehensive regulations for restaurant franchising in the state. The legislation defines key terms like "franchise," "franchisee," and "franchisor," and establishes important protections for franchise owners. The bill prohibits franchisors from terminating a franchise without good cause, requiring at least 90 days' notice and an opportunity to cure any deficiencies. It mandates that franchisors cannot discriminate between franchise-owned and franchisor-owned facilities, and prevents franchisors from implementing different standards for franchise locations. The act also provides protections for franchisees' surviving spouses or heirs, allowing them to continue operating the franchise for at least six months after the franchisee's death without additional training requirements. Additionally, the bill invalidates any franchise agreements that require applying laws from another state or selecting a specific court venue, and it establishes that violations of the act can be considered unfair trade practices. Franchisees harmed by violations can pursue legal action, and the law will apply to all franchises entered into or renewed after July 1, 2025. The legislation aims to create more equitable and transparent relationships between franchisors and franchisees in the restaurant industry.

Committee Categories

Justice

Sponsors (1)

Last Action

Senate Read and Referred (on 04/04/2025)

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