HB2584 • 2025

Prohibits a franchisor from imposing upon or collecting from a franchisee a fee that the franchisor did not disclose in the agreement under which the franchisor and franchisee established the franchise or in the disclosure document a franchisor must provide to the franchisee under federal law.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Representative Hudson
Last action: 2025-06-27
Official status: In House Committee
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Prohibits a franchisor from imposing upon or collecting from a franchisee a fee that the franchisor did not disclose in the agreement under which the franchisor and franchisee established the franchise or in the disclosure document a franchisor must provide to the franchisee under federal law.

Digest: Stops a franchisor from charging a fee that was not listed in the contract that created the franchise or shown in the disclosure that under federal law a franchisee must see before buying a franchise.

What This Bill Does

Digest: Stops a franchisor from charging a fee that was not listed in the contract that created the franchise or shown in the disclosure that under federal law a franchisee must see before buying a franchise.
Lets a franchisee sue a person for breaking the law.
Lets a state agency issue an order to stop the violation.
(Flesch Readability Score: 60.9).

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2025-06-27 House
In committee upon adjournment.
2025-01-17 House
Referred to Commerce and Consumer Protection.
2025-01-13 House
First reading. Referred to Speaker's desk.

Official Summary Text

Digest: Stops a franchisor from charging a fee that was not listed in the contract that created the franchise or shown in the disclosure that under federal law a franchisee must see before buying a franchise. Lets a franchisee sue a person for breaking the law. Lets a state agency issue an order to stop the violation. (Flesch Readability Score: 60.9).
Prohibits a franchisor from imposing upon or collecting from a franchisee a fee that the franchisor did not disclose in the agreement under which the franchisor and franchisee established the franchise or in the disclosure document a franchisor must provide to the franchisee under federal law.
Relating to: Relating to prohibitions upon fees that franchisors impose upon franchisees.
Current location: In House Committee

Current Bill Text

Read the full stored bill text

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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2584
Sponsored by Representative HUDSON (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: Stops a franchisor from charging a fee that was not listed in the contract that created
the franchise or shown in the disclosure that under federal law a franchisee must see before buying
a franchise. Lets a franchisee sue a person for breaking the law. Lets a state agency issue an order
to stop the violation. (Flesch Readability Score: 60.9).
Prohibits a franchisor from imposing upon or collecting from a franchisee a fee that the
franchisor did not disclose in the agreement under which the franchisor and franchisee established
the franchise or in the disclosure document a franchisor must provide to the franchisee under fed-
eral law.
A BILL FOR AN ACT
Relating to prohibitions upon fees that franchisors impose upon franchisees.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
Section 2 of this 2025 Act is added to and made a part of ORS 650.005 to
650.100.
SECTION 2. (1) A franchisor may not in any manner or by means of any unilateral
change to a franchise impose upon or collect from a franchisee in this state a fee that the
franchisor did not disclose in the agreement under which the franchisor and franchisee es-
tablished the franchise or in the disclosure document a franchisor must provide to the
franchisee under 16 C.F.R. part 436, as in effect on the effective date of this 2025 Act.
(2) A franchisor that violates the provisions of subsection (1) of this section is liable to
the franchisee as provided in ORS 650.020 (3) for a violation of ORS 650.020 (1) and the Di-
rector of the Department of Consumer and Business Services may issue an order to cease
and desist the violation as provided in ORS 650.055 (4).
SECTION 3.
Section 2 of this 2025 Act applies to franchises into which a franchisor and
franchisee enter or that a franchisor and franchisee renew on or after the effective date of
this 2025 Act.
NOTE: Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 731