Relating to agreements between franchisors and franchisees; prescribing an effective date.
Summary
House Bill 2572 limits the terms that a franchisor and franchisee may include in a franchise agreement. Specifically, it prohibits franchise agreements from requiring a franchisee to operate during hours or on days that the franchisee considers unprofitable or unsafe, and it also bars provisions that require operations on a religious holiday. The measure is framed as a restriction on contract terms in franchise relationships rather than a broader regulation of business hours generally.
The bill applies only to agreements entered into or renewed on or after its effective date, and it takes effect 91 days after adjournment sine die of the 2025 regular session. In practical terms, it would add a new limitation within Oregon’s franchise law framework, affecting franchisors and franchisees by making certain mandatory operating-hour provisions unenforceable in future agreements.
Impact
HB 2572 would amend Oregon’s franchise statutes by adding a new rule to ORS 650.005 to 650.100 that restricts what franchisors may require in franchise agreements. It would invalidate contract provisions that compel operation during hours or days the franchisee deems unprofitable or unsafe, or on religious holidays, for agreements entered into or renewed after the bill’s effective date. The bill would therefore affect franchisors, franchisees, and the drafting and enforcement of franchise contracts in Oregon.
Sentiment
Based on the bill text and the absence of committee testimony or recorded votes, there is no documented public debate in the provided materials. The measure’s framing suggests a consumer- and small-business-protective approach, emphasizing franchisee discretion over operating conditions and religious observance. No opposing arguments are captured in the available record, so the overall sentiment cannot be assessed beyond the bill’s protective intent.
Contention
The main potential points of contention are the bill’s limits on franchisor control over operating hours and days, especially where franchisors may want standardized hours for brand consistency, customer service, or profitability. Franchisees, by contrast, would likely support the measure because it gives them more autonomy to avoid unsafe, unprofitable, or religiously significant operating times. Because no committee discussion or votes are included, no specific legislators, industry groups, or other stakeholders are identified as taking positions in the provided record.