Bill
Franchisee Protection Act
- Number
- H.B. 441 (2025GS)
- Sponsor
- Rep. Ivory, Ken
- Final action
- House/ to Governor 3/17/2025
- Outcome
- House/ to Governor
Summary
This bill establishes protections for franchisees.
What it does
- This bill:
- defines terms;
- prohibits a franchisor from requiring a franchisee to open on a when operating conflicts with the franchisee's sincerely held religious belief;
- provides exceptions under which a franchisor may require a franchisee to open a franchise despite a conflict with the franchisee's sincerely held religious belief;
- provides a remedy for a franchisee if the franchisor violates the prohibition without an exception; and
- provides a civil penalty for a franchisor that violates the prohibition without an exception.
Every vote on this bill
2/13/2025House Comm - Substitute Recommendation
House Business, Labor, and Commerce Committee
11-0-5YEA2/13/2025House Comm - Favorable Recommendation
House Business, Labor, and Commerce Committee
8-3-5YEA2/21/2025House/ passed 3rd reading
Senate Secretary
64-0-11ABSENT2/26/2025Senate Comm - Favorable Recommendation
Senate Revenue and Taxation Committee
4-0-3not eligible / no record3/6/2025Senate/ circled
Senate 2nd Reading Calendar
0-0-29not eligible / no record3/6/2025Senate/ uncircled
Senate 2nd Reading Calendar
0-0-29not eligible / no record3/6/2025Senate/ substituted
Senate 2nd Reading Calendar
0-0-29not eligible / no record3/6/2025Senate/ circled
Senate 2nd Reading Calendar
0-0-29not eligible / no record3/6/2025Senate/ uncircled
Senate 2nd Reading Calendar
0-0-29not eligible / no record3/6/2025Senate/ passed 2nd & 3rd readings/ suspension
Clerk of the House
24-2-3not eligible / no record3/7/2025House/ concurs with Senate amendment
Senate President
71-0-4YEABill text
introduced version · official source
15 13-75-101 13-75-201 Franchisee Protection Act 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Ken Ivory Senate Sponsor: LONG TITLE General Description: This bill establishes protections for franchisees. Highlighted Provisions: This bill: defines terms; prohibits a franchisor from requiring a franchisee to open on a religious holiday or day of worship when doing so conflicts with the franchisee's sincerely held religious belief; provides exceptions under which a franchisor may require a franchisee to open when doing so may conflict with the franchisee's sincerely held religious belief; provides a remedy for a franchisee if the franchisor violates the prohibition without an exception; and provides a civil penalty for a franchisor that violates the prohibition without an exception. Money Appropriated in this Bill: None Other Special Clauses: This bill provides a special effective date. Utah Code Sections Affected: ENACTS: 13-75-101 , Utah Code Annotated 1953 13-75-201 , Utah Code Annotated 1953 Be it enacted by the Legislature of the state of Utah: Section 1, Section 13-75-101 is enacted to read: 75. FRANCHISE PROTECTION ACT 1. General Provisions 13-75-101. Definitions. (1) (a) "Franchise agreement" means a written agreement, an amendment, or renewal of a written agreement, or in the absence of any written agreement, a course of practice, in which a person grants to another person a license to use a trade name, trademark, service mark, or related characteristic. (b) "Franchise agreement" includes a sales and service agreement other than a sales and service agreement regulated by Chapter 14, New Automobile Franchise Act. (2) (a) "Franchisee" means a person with which a franchisor has agreed or permitted, in writing or in practice, to purchase, sell, or offer for sale a product manufactured, produced, represented, or distributed by the franchisor. (b) "Franchisee" does not include a person that is regulated by Chapter 14, New Automobile Franchise Act. (3) (a) "Franchisor" means a person that has agreed with or permits, in writing or in practice, a franchisee to purchase, sell, or offer for sale a product manufactured, produced, assembled, represented, or distributed by the franchisor. (b) "Franchisor" includes: (i) the manufacturer, producer, assembler, or distributor of the product; (ii) an intermediate distributor; and (iii) an agent, officer, or field or area representative of the franchisor. (c) "Franchisor" does not include a person that is regulated by Chapter 14, New Automobile Franchise Act. (4) (a) "Original franchise agreement" means a franchise agreement that is not a renewal or an amendment. (b) "Original franchise agreement" includes any written documents incorporated into the agreement by reference. (5) "Religious day operation requirement" means any requirement that has the effect of requiring a franchisee to operate a franchise on a day when doing so would conflict with the franchisee's sincerely held religious belief. Section 2, Section 13-75-201 is enacted to read: 2. Franchisee Protection 13-75-201. Franchisee religious exemption. (1) Except as provided in Subsection (2) , when a franchisee asserts a sincerely held religious belief, a franchisor may not: (a) enforce a religious day operation requirement; (b) require a franchisee to accept a religious day operation requirement as a part of an amendment to the franchise agreement; or (c) refuse to renew a franchise agreement based on a franchisee's decision to not comply with a religious day operation requirement. (2) Subsection (1) does not apply when: (a) the original franchise agreement conspicuously provides a religious day operation requirement; (b) the franchisee agrees through a renewal or an amendment to the franchise agreement to a religious day operation requirement; or (c) the franchisor and the franchisee enter a franchise agreement expanding the franchisee's number of franchise locations that contains a religious day operation requirement. (3) If a court finds reasonable cause to believe that a franchisor violated Subsection (1) , the court may order: (a) actual damages, reasonable attorney fees, and costs to the franchisee; (b) any permanent or temporary injunction, a temporary restraining order, or other appropriate order; and (c) civil penalties against the franchisor in an amount not exceeding: (i) $10,000 for a first violation; (ii) $25,000 for an additional violation within the five-year period ending on the day on which the franchisee filed the complaint; or (iii) $50,000 for a violation subsequent to the second violation within the seven-year period ending on the day on which the franchisee filed the complaint. Section 3. Effective Date. This bill takes effect: (1) except as provided in Subsection (2), May 7, 2025 ; or (2) if approved by two-thirds of all members elected to each house: (a) upon approval by the governor; (b) without the governor's signature, the day following the constitutional time limit of Utah Constitution, Article VII, Section 8; or (c) in the case of a veto, the date of veto override. 2-6-25 4:07 PM