VirginiaHB692026 Regular SessionHouseWALLET

Retail franchise agreements; governing law, competition restrictions.

Sponsored By: Dan I. Helmer (Democratic)

Became Law

Summary

Retail franchise agreements; governing law; competition restrictions. Provides that retail franchise agreements shall be governed by the laws of the Commonwealth and prohibits any person from offering or entering into a franchise agreement that includes competition restrictions that extend beyond termination or expiration of the franchise agreement, except as a term of sale in the event that a franchisee sells a franchise to a third party or back to the franchisor. This bill is identical to SB 240.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Franchise sales: required disclosures and no fraud

Franchisors must give the buyer the franchise agreement and any state‑required disclosure when offering or selling a franchise in Virginia. It is illegal to lie, hide key facts, or use tricks in a franchise sale.

Noncompetes banned; short sale limits allowed

Franchise contracts cannot stop a former franchisee from doing the same retail business after the deal ends. If you sell your franchise at an agreed price, the sale can include a limit for up to two years.

Which franchise deals Virginia law covers

This law applies only if the deal requires a place of business in Virginia. A contract counts as a franchise when you pay $500 or more in franchise fees. Some setups are excluded: sales under a marketing plan under 20% of your gross sales, and department or division sales where the retailer is not required to buy from the operator. Covered contracts are governed by Virginia law. Contracts made, extended, or changed before July 1, 2026 keep their original terms.

Sponsors & Cosponsors

Sponsor

  • Dan I. Helmer

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 394 • No: 2

House vote 3/12/2026

Senate substitute agreed to by House

Yes: 95 • No: 2

Senate vote 3/11/2026

Passed Senate with substitute Block Vote

Yes: 39 • No: 0

Senate vote 3/11/2026

Commerce and Labor Substitute agreed to

Yes: 0 • No: 0

Senate vote 3/11/2026

Passed Senate with substitute Block Vote

Yes: 40 • No: 0

Senate vote 3/11/2026

Reconsideration of Senate passage agreed to by Senate Block Vote

Yes: 40 • No: 0

Senate vote 3/10/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 3/10/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 37 • No: 0

Senate vote 3/9/2026

Reported from Commerce and Labor with substitute

Yes: 15 • No: 0

House vote 1/28/2026

Read third time and passed House Block Vote

Yes: 97 • No: 0

House vote 1/22/2026

Reported from Labor and Commerce

Yes: 22 • No: 0

House vote 1/20/2026

Subcommittee recommends reporting

Yes: 9 • No: 0 • Other: 1

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0553)

    4/13/2026Governor
  2. Approved by Governor-Chapter 553 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (HB69)

    4/6/2026House
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  5. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026House
  6. Signed by Speaker

    3/31/2026House
  7. Bill text as passed House and Senate (HB69ER)

    3/30/2026House
  8. Enrolled

    3/30/2026House
  9. Signed by President

    3/30/2026Senate
  10. Senate substitute agreed to by House (95-Y 2-N 0-A)

    3/12/2026House
  11. Fiscal Impact Statement from State Corporation Commission (HB69)

    3/12/2026House
  12. Passed Senate with substitute Block Vote (40-Y 0-N 0-A)

    3/11/2026Senate
  13. Reconsideration of Senate passage agreed to by Senate Block Vote (40-Y 0-N 0-A)

    3/11/2026Senate
  14. Passed Senate with substitute Block Vote (39-Y 0-N 0-A)

    3/11/2026Senate
  15. Commerce and Labor Substitute agreed to

    3/11/2026Senate
  16. Engrossed by Senate - committee substitute

    3/11/2026Senate
  17. Read third time

    3/11/2026Senate
  18. Passed by for the day Block Vote (Voice Vote)

    3/10/2026Senate
  19. Constitutional reading dispensed Block Vote (on 2nd reading) (37-Y 0-N 0-A)

    3/10/2026Senate
  20. Rules suspended

    3/10/2026Senate
  21. Committee substitute printed 26109317D-S1

    3/9/2026Senate
  22. Senate committee offered

    3/9/2026Senate
  23. Reported from Commerce and Labor with substitute (15-Y 0-N)

    3/9/2026Senate
  24. Referred to Committee on Commerce and Labor

    1/29/2026Senate
  25. Constitutional reading dispensed (on 1st reading)

    1/29/2026Senate

Bill Text

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