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NJ S2336

Bill

Status

Introduced

1/29/2024

Primary Sponsor

Raj Mukherji

Click for details

Origin

Senate

2024-2025 Regular Session

AI Summary

  • Defines "hospitality franchise" as written arrangements granting licenses to use trade names or marks for hotels, motels, inns, and similar lodging establishments, and classifies such franchises as "merchandise" under New Jersey's consumer fraud act

  • Prohibits hospitality franchisors from imposing post-termination non-compete restrictions lasting more than six months or extending beyond the county where the franchise was located

  • Bars franchisors from requiring capital investments over $25,000 more than once every five years unless the franchisee can recover the investment during the remaining franchise term

  • Requires franchisors to disclose and turn over to franchisees any rebates, commissions, or kickbacks received from vendors, and prohibits exclusive purchasing requirements when comparable goods are available elsewhere

  • Prohibits franchisors from imposing undisclosed fees, charging for negative guest reviews, selling loyalty program points without fair compensation to franchisees, or denying access to essential franchise services like property management systems and online listings

Legislative Description

Concerns hospitality franchise agreements.

Commerce

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee

1/29/2024

Committee Referrals

Commerce1/29/2024

Full Bill Text

No bill text available