VirginiaSB2402026 Regular SessionSenateWALLET

Retail franchise agreements; governing law, competition restrictions.

Sponsored By: Christopher T. Head (Republican)

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 HB 69.

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Bill Overview

Analyzed Economic Effects

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

New contract protections for Virginia franchisees

Beginning July 1, 2026, covered franchise contracts offered or entered into are governed by Virginia law. This applies when the agreement expects or requires the franchisee to establish or keep a business location in Virginia. Agreements offered or entered into beginning that date cannot block franchisees from selling goods or services at retail after the agreement ends. When franchisees sell the franchise to a third party or the franchisor at a mutually agreed price, restrictions can last up to two years after the sale. The law does not change contracts entered into, extended, or amended before July 1, 2026.

Sponsors & Cosponsors

Sponsor

  • Christopher T. Head

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 258 • No: 0

Senate vote • 3/10/2026

House substitute agreed to by Senate

Yes: 40 • No: 0

House vote • 3/6/2026

Passed House with substitute Block Vote

Yes: 97 • No: 0

House vote • 3/3/2026

Reported from Labor and Commerce with substitute

Yes: 22 • No: 0

House vote • 2/26/2026

Subcommittee recommends reporting with substitute

Yes: 7 • No: 0

Senate vote • 2/6/2026

Read third time and passed Senate Block Vote

Yes: 40 • No: 0

Senate vote • 2/5/2026

Engrossed by Senate Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/4/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote • 2/4/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/2/2026

Reported from Commerce and Labor

Yes: 12 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0554)

    4/13/2026Governor
  2. Approved by Governor-Chapter 554 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (SB240)

    4/6/2026Senate
  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

    3/31/2026Senate
  6. Signed by Speaker

    3/31/2026House
  7. Bill text as passed Senate and House (SB240ER)

    3/30/2026Senate
  8. Enrolled

    3/30/2026Senate
  9. Signed by President

    3/30/2026Senate
  10. Fiscal Impact Statement from State Corporation Commission (SB240)

    3/12/2026Senate
  11. House substitute agreed to by Senate (40-Y 0-N 0-A)

    3/10/2026Senate
  12. Passed House with substitute Block Vote (97-Y 0-N 0-A)

    3/6/2026House
  13. Engrossed by House - committee substitute

    3/6/2026House
  14. committee substitute agreed to

    3/6/2026House
  15. Read third time

    3/6/2026House
  16. Read second time

    3/5/2026House
  17. Committee substitute printed 26108684D-H1

    3/3/2026House
  18. Reported from Labor and Commerce with substitute (22-Y 0-N)

    3/3/2026House
  19. House subcommittee offered

    2/26/2026House
  20. Subcommittee recommends reporting with substitute (7-Y 0-N)

    2/26/2026House
  21. Assigned HCL sub: Subcommittee #2

    2/24/2026House
  22. Referred to Committee on Labor and Commerce

    2/12/2026House
  23. Read first time

    2/12/2026House
  24. Placed on Calendar

    2/12/2026House
  25. Read third time and passed Senate Block Vote (40-Y 0-N 0-A)

    2/6/2026Senate

Bill Text

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