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Enacted

Alabama prohibits franchisors from forcing religious-day operations and sets court penalties

Original title: Franchises; prohibit franchisor from requiring franchisee to operate on a religious day, exceptions provided

Last action · April 17, 2026: EnactedSponsor: Dan Roberts

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Does

Alabama law bans franchisors from enforcing, requiring in agreement amendments, or refusing to renew agreements over a franchisee's refusal to operate on a religious day due to sincerely held beliefs, effective June 1, 2026. The legislation exempts original agreements, agreed renewals, or expansion agreements that explicitly contain operating requirements. Franchisors violating the ban face court-ordered damages, attorney fees, injunctions, and civil penalties ranging from $10,000 up to $50,000 for repeated violations.

Why it matters

Franchise owners gain the legal right to observe religious days without facing contract termination or nonrenewal, while franchisors face financial penalties up to $50,000 and court liability if they penalize franchisees for religious observance outside agreed terms.

Background
  • Franchise agreements are commercial contracts governed primarily by state laws and contract terms between franchisors and independent business owners. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

franchisees

Franchisees gain the right to refuse operating on religious days without facing contract termination or nonrenewal, and can seek court damages and penalties.

Directly affected

franchisors

Franchisors are prohibited from enforcing religious day operation requirements outside of explicit agreement exemptions and face potential civil penalties and legal costs for violations.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Does this law apply to all franchise agreements in Alabama?
No. The law excludes motor vehicle franchises and certain beverage and specific industry franchises regulated under specific chapters of Title 8, Title 28, and Title 34 of the Code of Alabama 1975.
What happens if a franchise agreement already explicitly requires operating on a religious day?
The prohibition does not apply if the original , an agreed-upon renewal or amendment, or an expansion agreement conspicuously provides for or contains a .
What penalties can a franchisor face for violating this law?
A franchisor may face court-ordered actual damages, attorney fees, costs, injunctions, and civil penalties up to $10,000 for a first violation, up to $25,000 for an additional violation within five years, and up to $50,000 for an additional violation within seven years.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Current status: Became law.

Procedural history

22 actions
  1. Apr 17, 2026SenateEnrolled
    Enacted
  2. Apr 9, 2026House
    Signature Requested
  3. Apr 9, 2026SenateEnrolled
    Delivered to Governor
  4. Apr 9, 2026Senate
    Enrolled
  5. Apr 8, 2026Senate
    Ready to Enroll
  6. Apr 8, 2026Senate
    Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1260
Show 16 earlier actions
  1. Apr 8, 2026HouseFloor
    Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1306
  2. Apr 8, 2026House
    Motion to Adopt - Adopted Roll Call 1305
  3. Apr 8, 2026House
    Blackshear 1st Amendment Offered
  4. Apr 8, 2026House
    Motion to Adopt - Adopted Roll Call 1304
  5. Apr 8, 2026House
    Commerce and Small Business Engrossed Substitute Offered
  6. Apr 8, 2026House
    Third Reading in Second House
  7. Feb 19, 2026House
    Read for the Second Time and placed on the Calendar
  8. Feb 18, 2026HouseCommittee
    Reported Out of Committee Second House
  9. Feb 12, 2026HouseCommittee
    Pending Committee Action in Second House
  10. Feb 12, 2026HouseIntroduced
    Read for the first time and referred to the House Committee on Commerce and Small Business
  11. Feb 12, 2026SenateFloor
    Motion to Read a Third Time and Pass - Adopted Roll Call 388
  12. Feb 12, 2026Senate
    Third Reading in House of Origin
  13. Jan 29, 2026Senate
    Read for the Second Time and placed on the Calendar
  14. Jan 28, 2026SenateCommittee
    Reported Out of Committee House of Origin
  15. Jan 14, 2026SenateCommittee
    Pending Committee Action in House of Origin
  16. Jan 14, 2026SenateIntroduced
    Read for the first time and referred to the Senate Committee on Fiscal Responsibility and Economic Development

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

New Statutory Protections for Franchisee Religious Observance

The act establishes a specific statutory cause of action and tiered civil penalties for franchisors that penalize franchisees who refuse to operate on religious grounds.

Connected Entities

Dan Roberts, Patrick Harris
PersonDan Roberts“Senator who sponsored SB 138”Map →
PersonPatrick Harris“Secretary of the Senate”Map →

Sources

Open source document

alison.legislature.state.al.us

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy60
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz35
    Current news / social attention level

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