S 2336 New Jersey Senate · 2024-2025 Regular Session

Concerns hospitality franchise agreements.

S 2336 amends New Jersey's Franchise Practices Act to specifically regulate hospitality franchises (including hotels, motels, and similar accommodations). It prohibits franchisors from imposing unreasonable restrictions on franchise owners after termination, forcing costly relocations or exclusive purchases, hiding fees, or charging for guest reviews. The bill defines "hospitality franchise" broadly and ensures these agreements are treated as "merchandise" under consumer fraud law, applying to franchises with a New Jersey presence (e.g., 20% of sales from NJ or a NJ resident owner). Key protections include banning unexplained fees, requiring disclosure of third-party payments, and preventing franchisors from competing in a franchisee's protected territory. The law takes effect immediately for new or modified franchise agreements.
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2024
Committee Review
Floor Vote
Governor
Introduced Jan 29, 2024 Last action Jan 29, 2024
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Jan 29, 2024
Introduced
Introduced in the Senate, Referred to Senate Commerce Committee
upper
1 primary · 2 co-sponsors

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