2025 Franchise Laws

Virginia's 2025 Proposed Franchise Law: What You Need to Know

In 2025, Virginia’s legislature introduced Senate Bill 798, a measure aimed at regulating retail franchise agreements within the state. The bill has already passed the Senate and is currently under consideration in the House. If enacted, this law could have significant implications for both franchisors and franchisees operating in Virginia.

Key Provisions of Senate Bill 798

• Governing Law: The bill establishes that retail franchise agreements in Virginia must adhere to the state’s governing law, overriding any provisions that might require the application of laws from another jurisdiction.

• Competition Restrictions: It includes new regulations to limit restrictions on competition, ensuring fair practices between franchisors and franchisees.

Why This Matters to Franchisees

For potential franchisees, this proposed legislation could provide additional protections and clarity when entering into agreements with franchisors. By requiring the use of Virginia’s governing law, franchisees would have the benefit of local legal protections, potentially reducing the complexity and cost of resolving disputes.

Next Steps

As Senate Bill 798 moves through the legislative process, we’ll continue to provide updates on its progress and what it means for franchising in Virginia. Be sure to check back here regularly for the latest news and insights.