AL SB138

Franchisors are prohibited from requiring franchisees with sincerely held religious beliefs to operate on religious days, enforcing such requirements, or refusing to renew agreements based on non-compliance

Protections do not apply if the original franchise agreement already required religious day operation, the franchisee voluntarily agrees to such terms, or a new expansion agreement includes the requirement

Excludes motor vehicle franchises and alcohol beverage distributors/manufacturers from coverage under the act

Franchisees may sue for violations and recover actual damages, attorney fees, and injunctive relief

Civil penalties range from $10,000 for first violations to $25,000 for additional violations within 5 years and $50,000 for violations within 7 years; effective date is June 1, 2026