MONTGOMERY — Legislation by State Sen. Dan Roberts (R-Mountain Brook) prohibiting franchisors from requiring franchisees to operate on a religious day of a "sincerely held religious belief" passed the Senate on Thursday.
The bill would prohibit a franchisor from requiring a franchisee that asserts a sincerely held religious belief to operate on a religious day unless: the original franchise agreement required operation on a religious day, the franchisee agrees to the operation on a religious day; or the franchise locations are expanded, and the agreement setting forth the expansion requires the operation on a religious day.
The bill would also create a cause of action for a franchisor who violates the act and impose penalties.
Roberts said on the Senate floor, “It protects small business owners with significant financial stakes from having to choose between their faith and their livelihood. It encourages transparency in business contracts, being that expected work days must be disclosed up front, not imposed after the franchisee is already invested. It balances the power in the franchisee relationship by ensuring fair negotiations, predictable terms, and a legal path in case the law is violated.”
“It prevents franchisors from denying renewal, threatening termination, or penalizing a franchisee solely because the franchisee refuses to accept a new religious day operation requirement,” he added.
Senate Minority Leader Bobby Singleton (D-Greensboro) ultimately voted for the bill after questioning Roberts, but said, “We’re trying to legislate what businesses can do within their contractual agreement.”
“I think this bill gets in the middle of that. Either you’re pro-business or anti-business,” Singleton said on the Senate floor.
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