1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2584
Sponsored by Representative HUDSON (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: Stops a franchisor from charging a fee that was not listed in the contract that created
the franchise or shown in the disclosure that under federal law a franchisee must see before buying
a franchise. Lets a franchisee sue a person for breaking the law. Lets a state agency issue an order
to stop the violation.(Flesch Readability Score: 60.9).
Prohibits a franchisor from imposing upon or collecting from a franchisee a fee that the
franchisor did not disclose in the agreement under which the franchisor and franchisee established
the franchise or in the disclosure document a franchisor must provide to the franchisee under fed-
eral law.
A BILL FOR AN ACT
Relating to prohibitions upon fees that franchisors impose upon franchisees.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2025 Act is added to and made a part of ORS 650.005 to
650.100.
SECTION 2. (1) A franchisor may not in any manner or by means of any unilateral
change to a franchise impose upon or collect from a franchisee in this state a fee that the
franchisor did not disclose in the agreement under which the franchisor and franchisee es-
tablished the franchise or in the disclosure document a franchisor must provide to the
franchisee under 16 C.F.R. part 436, as in effect on the effective date of this 2025 Act.
(2) A franchisor that violates the provisions of subsection (1) of this section is liable to
the franchisee as provided in ORS 650.020 (3) for a violation of ORS 650.020 (1) and the Di-
rector of the Department of Consumer and Business Services may issue an order to cease
and desist the violation as provided in ORS 650.055 (4).
SECTION 3. Section 2 of this 2025 Act applies to franchises into which a franchisor and
franchisee enter or that a franchisor and franchisee renew on or after the effective date of
this 2025 Act.
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 731