HB2590 • 2025

Prohibits a franchisor from requiring a franchisee to purchase goods, supplies, inventories or services from the franchisor or a source the franchisor designates if goods, supplies, inventories or services of comparable quality are available elsewhere.

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 requiring a franchisee to purchase goods, supplies, inventories or services from the franchisor or a source the franchisor designates if goods, supplies, inventories or services of comparable quality are available elsewhere.

Digest: Tells a franchisor not to make a franchisee buy goods or services from the franchisor or a source the franchisor favors.

What This Bill Does

Digest: Tells a franchisor not to make a franchisee buy goods or services from the franchisor or a source the franchisor favors.
Lists some exceptions.
Says that a franchisor may not get money, goods or a benefit from a person that does business with a franchisee unless the franchisor passes the money, goods or benefit to the franchisee right away.
Lists an exception.

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: Tells a franchisor not to make a franchisee buy goods or services from the franchisor or a source the franchisor favors. Lists some exceptions. Says that a franchisor may not get money, goods or a benefit from a person that does business with a franchisee unless the franchisor passes the money, goods or benefit to the franchisee right away. Lists an exception. (Flesch Readability Score: 64.9).
Prohibits a franchisor from requiring a franchisee to purchase goods, supplies, inventories or services from the franchisor or a source the franchisor designates if goods, supplies, inventories or services of comparable quality are available elsewhere. Specifies exceptions.
Prohibits a franchisor from receiving payment, goods, services or any other benefit from a person with which a franchisee does business unless the franchisor accounts for and transmits to the franchisee the payment, goods, service or benefit. Specifies exceptions.
Relating to: Relating to prohibited provisions in franchise agreements.
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 2590
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: Tells a franchisor not to make a franchisee buy goods or services from the franchisor
or a source the franchisor favors. Lists some exceptions. Says that a franchisor may not get money,
goods or a benefit from a person that does business with a franchisee unless the franchisor passes
the money, goods or benefit to the franchisee right away. Lists an exception. (Flesch Readability
Score: 64.9).
Prohibits a franchisor from requiring a franchisee to purchase goods, supplies, inventories or
services from the franchisor or a source the franchisor designates if goods, supplies, inventories or
services of comparable quality are available elsewhere. Specifies exceptions.
Prohibits a franchisor from receiving payment, goods, services or any other benefit from a per-
son with which a franchisee does business unless the franchisor accounts for and transmits to the
franchisee the payment, goods, service or benefit. Specifies exceptions.
A BILL FOR AN ACT
Relating to prohibited provisions in franchise agreements.
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) A franchisor may not require as part of a franchise that the franchisee
purchase goods, supplies, inventories or services solely from the franchisor or a source the
franchisor designates if goods, supplies, inventories or services of comparable quality are
available from sources other than the franchisor or the sources that the franchisor desig-
nates, except that the franchisor may:
(A) Publish a list of approved sources of goods, supplies, inventories or services that
comply with a published set of the franchisor’s specifications and standards; and
(B) Disapprove sources of goods, supplies, inventories or services that do not comply with
the franchisor’s published specifications and standards.
(b) Paragraph (a) of this subsection does not apply to goods, supplies, inventories or
services that the franchisor manufactures or that bear the franchisor’s trademark.
(2)(a) Except as provided in paragraph (b) of this subsection, a franchisor may not receive
from a person with which a franchisee does business a payment, a provision of goods or
services or of any other benefit if the payment, provision or benefit arises as a consequence
of or in relation to the franchisee’s transaction with the person, unless the franchisor
promptly accounts for and transmits the payment, provision or benefit to the franchisee.
(b) A franchisor may receive compensation for services the franchisor provides to the
person or the franchisee in enabling or facilitating the transaction between the person and
the franchisee.
SECTION 3.
Section 2 of this 2025 Act applies to franchises into which a franchisor and
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 730
HB 2590
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franchisee enter or that a franchisor and franchisee renew on or after the effective date of
this 2025 Act.
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