HB 1550

Abstract

Franchises; covenants not to compete. Declaresthat any covenant not to compete executed on or after July 1, 2020,between a franchisor and any of its franchisees that restricts theability of a former franchisee to conduct a business that will competewith the franchisor or another of its franchisees is void unlessthe franchisor or other franchisee has conducted such a businesswithin 150 miles of the former franchisee's authorized area at anytime during the 12 months preceding the termination or expirationof the former franchisee's franchise. A former franchisee that suffersdamages as a result of a violation may bring an action against itsformer franchisor. Violations are also subject to imposition of civilpenalties by the State Corporation Commission.