Retail franchise agreements; governing law, competition restrictions.

Retail franchise agreements; governing law; competition restrictions. Provides that retail franchise agreements shall be governed by the laws of the Commonwealth and prohibits any person from offering or entering into a franchise agreement that includes competition restrictions that extend beyond termination or expiration of the franchise agreement, except as a term of sale in the event that a franchisee sells a franchise to a third party or back to the franchisor. This bill is identical to SB 2…

Source: OpenStates · fetched April 13, 2026

• W-2 worker (non-union)directModerate impactHigh certainty

  Prohibits competition restrictions in retail franchise agreements that extend beyond termination or expiration, except in specific sale scenarios. This could impact the ability of franchisors to control post-termination competition and potentially affect the terms offered to franchisees.

  “prohibits any person from offering or entering into a franchise agreement that includes competition restrictions that extend beyond termination or expiration of the franchise agreement, except as a term of sale in the event that a franchisee sells a franchise to a third party or back to the franchisor.”· Retail franchise agreements; governing law; competition restrictions.