Virginia Senate Bill SB798

Virginia 2025 Regular Session

• Introduced: 12/28/24
• Refer: 12/28/24
• Report Pass: 1/13/25
• Engrossed: 1/16/25
• Refer: 2/4/25

Caption

Retail franchise agreements; governing law, competition restrictions.

Impact

If passed, SB798 could significantly impact the landscape of franchise operations within Virginia by codifying specific rights and obligations. The bill introduces stricter rules against practices that could mislead franchisees, such as the prohibition of fraudulent schemes in the offering of franchises and ensuring clear disclosure of critical information like agreement terms. In this way, the legislation contributes to a more equitable regulatory framework that could foster healthy competition among franchisors and encourage entrepreneurial ventures in the retail sector.

Summary

Senate Bill 798 aims to amend and reenact sections of the Code of Virginia pertaining to retail franchise agreements. Specifically, the bill looks to clarify definitions involved in these agreements and the legal implications tied to competition restrictions within this context. By establishing more explicit parameters, the legislation seeks to streamline the operation of franchises while ensuring that both franchisors and franchisees are adequately protected under state law.

Contention

There may be notable points of contention surrounding SB798, primarily regarding how the amended laws would interact with existing franchise relationships. While proponents argue that the legislation enhances protections for franchisees, critics may express concerns that overly restrictive measures could limit franchisors' ability to set competitive terms and may inadvertently diminish the franchise model's profitability. The responses from stakeholders in the retail and franchise sectors will likely be critical in shaping future discussions surrounding the bill.