Bill > SB138

This bill, effective June 1, 2026, prohibits franchisors from forcing franchisees to operate their businesses on a day that conflicts with the franchisee's sincerely held religious beliefs, defining a "religious day operation requirement" as any such mandate. This protection applies to existing franchise agreements and renewals, preventing franchisors from enforcing these requirements, demanding franchisees accept them in amendments, or refusing to renew a franchise based on a franchisee's adherence to their religious beliefs. However, exceptions exist where the original franchise agreement explicitly requires operation on that day, the franchisee agrees to such a requirement through a renewal or amendment, or when a new franchise agreement is established for additional locations that includes such a requirement. If a franchisor violates these provisions, a court can order damages, attorney fees, injunctions, and civil penalties ranging from $10,000 to $50,000 depending on the violation's recurrence. The bill specifically excludes certain regulated industries, such as motor vehicle dealerships, from these provisions.

Business and Industry

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