AlabamaAlabama law limits when franchisors can require religious-day operations
Starting June 1, 2026, Alabama franchisors may not enforce certain religious-day requirements or refuse renewal over them, unless an exception applies.
What it does
When a franchisee asserts a sincere religious belief, a franchisor may not enforce a conflicting operating day, require it in an amendment, or refuse renewal because the franchisee will not comply. Exceptions apply when an agreement clearly requires that day, the franchisee agrees, or an expansion agreement adds locations with the requirement.
A court may award damages and legal costs, order an injunction, or impose a civil penalty if it finds reasonable cause to believe a franchisor violated the religious-day restrictions.
Argument forFranchise owners may be able to honor a religious day without losing a renewal, unless an agreement or location expansion triggers an exception.
Argument againstFranchisors may have less flexibility to set required opening days when an owner's sincere religious beliefs conflict with those days, unless an exception applies.
More detail
A franchisor may not enforce a religious-day operating requirement, require a franchisee to accept one in an agreement amendment, or refuse renewal because the franchisee will not follow one. The rule covers franchisees who assert a sincerely held religious belief. It excludes people regulated under the listed motor vehicle, alcohol, and other specified franchise laws. The restrictions do not apply if the original or current agreement clearly requires operation on the conflicting day. They also do not apply if the franchisee agrees to the requirement in a renewal or amendment, or enters an agreement adding franchise locations that includes it. The law takes effect June 1, 2026.
A court may order remedies if it finds reasonable cause to believe a franchisor violated the restrictions. The remedies concern a franchisor's violation of the religious-day restrictions. A court may award actual damages, reasonable attorney fees, and costs, or order an injunction or other appropriate relief. A court may impose a civil penalty of up to $10,000 for a first violation, up to $25,000 for an additional violation within the five years before the complaint, or up to $50,000 for an additional violation within the seven years before the complaint. The law takes effect June 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 17EnactedBecame Law
- Apr 9EnrolledTo Governor
- Apr 9Delivered to GovernorMinor
- Apr 9Signature Requested
- Apr 8Third Reading in Second House
- Vote recorded Third Reading in Second House. Result: pass.Lower
- Vote recorded Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1260. Result: pass.Upper
- Vote recorded Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1306. Result: pass.Lower
- Vote recorded Motion to Adopt - Adopted Roll Call 1305. Result: pass.Lower
- Vote recorded Motion to Adopt - Adopted Roll Call 1304. Result: pass.Lower
- Apr 8Commerce and Small Business Engrossed Substitute Offered (Commerce and Small Business)Minor
- Apr 8Motion to Adopt - Adopted Roll Call 1304Major
- Apr 8Blackshear 1st Amendment OfferedMinor
- Apr 8Motion to Adopt - Adopted Roll Call 1305Major
- Apr 8Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1306Passed House
- Apr 8Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1260Major
- Apr 8Ready to Enroll
- Feb 19Read for the Second Time and placed on the Calendar (Commerce and Small Business)Minor
- Feb 18Reported Out of Committee Second House (Commerce and Small Business)
- Feb 12Third Reading in House of Origin
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 388. Result: pass.Upper
- Vote recorded Third Reading in House of Origin. Result: pass.Upper
- Feb 12Motion to Read a Third Time and Pass - Adopted Roll Call 388Passed Senate
- Feb 12Read for the first time and referred to the House Committee on Commerce and Small BusinessMinor
- Feb 12Pending Committee Action in Second House (Commerce and Small Business)
- Jan 29Read for the Second Time and placed on the Calendar (Fiscal Responsibility and Economic Development)Minor
- Jan 28Reported Out of Committee House of Origin
- Jan 14Read for the first time and referred to the Senate Committee on Fiscal Responsibility and Economic DevelopmentMinor
- Jan 14Pending Committee Action in House of Origin (Fiscal Responsibility and Economic Development)Introduced
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