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Bill

SB 138

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

2026 Regular Session Introduced by Dan Roberts

Alabama bill prohibits franchisors from requiring franchisees to operate on religious days, protecting faith-based business closures while balancing corporate franchise standards.

Enacted
#businesses&financialinstitutions
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Bill Summary · SB 138

Legislative bill overview

SB 138 would prohibit franchisors from requiring franchisees to operate their businesses on religious days, with specified exceptions. The bill protects franchise operators' religious freedom by preventing corporate franchise systems from mandating business hours that conflict with their religious observances.

Why is this important

Franchise agreements typically standardize operating procedures across all locations, often leaving little flexibility for individual franchisees. This bill addresses a real tension between corporate uniformity requirements and individual religious practice, affecting franchisees whose faith traditions require closure on specific days (Sabbath, religious holidays, etc.).

Potential points of contention

  • Business uniformity vs. religious accommodation: Franchisors argue standardized operations are essential for brand consistency and consumer expectations; franchisees counter that religious accommodation is a fundamental right
  • Economic impact on franchisees: Allowing selective closures could reduce franchisee revenue; opponents question whether this is a hidden subsidy for religious practice
  • Definition of "exceptions": The bill's exceptions are not detailed in the summary, leaving unclear what circumstances might allow franchisors to override this protection, creating potential litigation over scope
  • Interstate commerce concerns: Franchisors operating across multiple states may face conflicting requirements if other states pass different rules

Compiled from official sources — confirm details with the bill’s official record.

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