This amendment creates a new law that stops franchise owners from forcing their partners to work on days that conflict with the partner's sincere religious beliefs, unless specific exceptions apply.
Alabama2026Enacted
SB138
SB138: Franchise Religious Day Operation Rules
Last scannedAug 24, 2026, 9:06 AM
In one sentence
This law stops franchisors from forcing franchisees to work on days that conflict with their sincerely held religious beliefs, unless the rule was already in an original contract or agreed upon later.
What it does
- Prohibits franchisors from enforcing rules requiring a franchisee to operate on a day conflicting with their sincerely held religious belief.
- Stops franchisors from adding new religious day operation requirements as changes (amendments) to existing agreements.
- Prevents franchisors from refusing to renew an agreement because the franchisee will not work on those specific days.
- Allows courts to order payments for actual damages, legal fees, and costs if a violation is found.
- Authorizes civil penalties of up to $10,000 for a first violation, $25,000 for an additional violation within five years, or $50,000 for further violations.
Who it affects
- Franchisors who grant licenses to use their trade names and trademarks.
- Franchisees who pay fees to sell products under the franchisor's brand.
- Courts that hear cases regarding these franchise agreement disputes.
- Excludes businesses regulated by specific motor vehicle or other state franchise acts.
Limits and unknowns
- This law does not apply if the original agreement already clearly stated that operation on those days was required.
- Franchisors may still enforce these rules if the franchisee agrees to them during a renewal, amendment, or expansion of locations.
- The specific definition of what counts as a 'sincerely held religious belief' is not detailed in this text.
Plain language
Terms to know
- Franchise Agreement
- A written deal, amendment, renewal, or course of practice where one person pays a fee to use another's brand name, trademark, or service mark. It excludes agreements regulated by specific motor vehicle franchise laws.
- Religious Day Operation Requirement
- Any rule that forces a franchisee to work on a day when doing so goes against their sincere religious beliefs.
- Original Franchise Agreement
- A contract between the parties that is not a renewal or an amendment of a previous deal, including any documents incorporated by reference.
Official record
Sources
Official summary
This act: (1) prohibits a franchisor from enforcing, requiring as an amendment to a franchise agreement, or refusing to renew a franchise agreement for noncompliance with a religious day operation requirement when a franchisee has a sincerely held religious belief,; (2) exempts original franchise agreements, agreed upon renewals or amendments, or agreements expanding locations that contain a religious day operation requirement; and (3) upon a finding of reasonable cause, authorizes courts to order actual damages, attorneys fees, and costs to franchisees, a temporary restraining order or injunction, and civil penalties not exceeding $10,000 for a first violation, $25,000 for an additional violation, and $50,000 for an additional violation.
Official activity
Bill history
- EnactedSenate
- Signature RequestedHouse
- Delivered to GovernorSenate
- EnrolledSenate
- Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1306 (Yeas 101, Nays 0)House
- Motion to Adopt - Adopted Roll Call 1305 (Yeas 105, Nays 0)House
- Motion to Adopt - Adopted Roll Call 1304 (Yeas 105, Nays 0)House
- Third Reading in Second House (Yeas 105, Nays 0)House
- Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1260 (Yeas 33, Nays 0)Senate
- Ready to EnrollSenate
- Blackshear 1st Amendment OfferedHouse
- Commerce and Small Business Engrossed Substitute OfferedHouse
- Read for the Second Time and placed on the CalendarHouse
- Reported Out of Committee Second HouseHouse
- Motion to Read a Third Time and Pass - Adopted Roll Call 388 (Yeas 30, Nays 1)Senate
- Third Reading in House of Origin (Yeas 33, Nays 0)Senate
- Pending Committee Action in Second HouseHouse
- Read for the first time and referred to the House Committee on Commerce and Small BusinessHouse
- Read for the Second Time and placed on the CalendarSenate
- Reported Out of Committee House of OriginSenate
Changes
Amendments
2 stored
This amendment updates specific legal references in the bill and begins to list exceptions where a franchisor can still require operation on religious days.