New franchise law effective July 2025 addresses unfair trade practices in Georgia

Georgia State Legislature has introduced Senate Bill 376, a significant piece of legislation aimed at enhancing protections for franchisees within the state. Proposed on April 4, 2025, the bill seeks to address unfair trade practices by establishing clear legal recourse for franchisees who suffer harm due to violations by franchisors.

The primary purpose of Senate Bill 376 is to ensure that franchisees—those who operate businesses under a franchisor's brand—are safeguarded against unfair practices that could jeopardize their operations. Key provisions of the bill stipulate that any violation of its terms by a franchisor will be classified as an unfair trade practice, allowing affected franchisees to pursue legal action for damages. This aligns with the existing Fair Business Practices Act of 1975, reinforcing the state's commitment to fair business conduct.

The bill is set to take effect on July 1, 2025, and will apply to all new franchises and any renewals or modifications made after this date. This timeline allows franchisees to prepare for the new legal landscape and understand their rights under the law.

Debate surrounding Senate Bill 376 has highlighted concerns from franchisors about the potential for increased litigation and operational challenges. Critics argue that the bill may lead to an uptick in lawsuits, which could strain resources for both franchisors and franchisees. However, supporters assert that the legislation is essential for leveling the playing field, particularly for small business owners who may feel vulnerable to larger corporate entities.

The implications of this bill extend beyond legal protections; it could reshape the franchise landscape in Georgia by fostering a more equitable environment for franchisees. Experts suggest that by empowering franchisees, the bill may encourage more individuals to invest in franchise opportunities, potentially boosting local economies.

As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress and its potential impact on the franchise industry in Georgia. The outcome of Senate Bill 376 could set a precedent for similar legislation in other states, making it a pivotal moment for franchise relations nationwide.