Senate Bill 138 Alabama 2026 Session

Summary

Primary Sponsor

Dan RobertsSenator

Republican

Session

2026 Regular Session

Title

Franchises; prohibit franchisor from requiring franchisee to operate on a religious day, exceptions provided

Summary

SB138 would protect franchisees who hold sincere religious beliefs from being forced to operate on a religious day, unless the contract or a later expansion requires it or the franchisee consents.

What This Bill Does

It prohibits franchisors from enforcing a religious day operation requirement against a franchisee who asserts a sincerely held religious belief, with three exceptions: if the original franchise agreement requires it, if the franchisee consents to the operation, or if an expansion agreement requires it. It also creates a legal remedy, allowing a franchisee to sue for violations and seek damages, attorney fees, costs, and injunctions, plus civil penalties. The bill defines key terms (franchise, franchisee, franchisor, original agreement, and religious day operation) to clarify who is covered, and sets an effective date of June 1, 2026.

Who It Affects

• Franchisees who hold sincere religious beliefs would be protected from being forced to operate on religious days unless one of the specified exceptions applies.
• Franchisors and their franchise networks would need to comply with the rule and could face damages, fees, injunctions, and civil penalties if they violate it.

Key Provisions

• Prohibits enforcing a religious day operation requirement against a franchisee who asserts a sincerely held religious belief, with three limited exceptions.
• Allows a cause of action, damages, attorney's fees, costs, and injunctive relief for violations.
• Imposes civil penalties: $10,000 for a first violation; $25,000 for additional violations within five years; $50,000 for additional violations within seven years.
• Effective June 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Businesses & Financial Institutions