VirginiaHB692026 Regular SessionHouseWALLET

Retail franchise agreements; governing law, competition restrictions.

Sponsored By: Dan I. Helmer (Democratic)

Signed by Governor

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

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

New contract rules for Virginia franchisees

Beginning July 1, 2026, Virginia law governs covered retail franchise contracts. Coverage requires a written agreement using the franchisor’s marketing system and brand, with a franchise fee of at least $500. The business must also be expected or required to maintain a Virginia location, including a franchisor-designated, properly marked truck or van. Franchise fees exclude genuine wholesale inventory purchases and fair-market-value payments for necessary property, fixtures, equipment, or supplies. Incidental side-business marketing arrangements are excluded; sales below 20% of the retailer’s gross sales count as incidental. Certain departments within or alongside retail stores are also excluded when they need not buy goods or services from the store operator. The law bans fraud, misleading statements, and failure to provide the franchise agreement and required disclosure document. Franchise agreements cannot restrict franchisees from offering, selling, or distributing goods or services at retail after termination or expiration. But a franchise sale at a mutually agreed price to another buyer or the franchisor can include a restriction lasting up to two years. The act does not alter, modify, or impair contracts entered into, extended, or amended before July 1, 2026.

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: 40 • 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: 39 • 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

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 37 • No: 0

Senate vote • 3/10/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • 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

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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