NJ S2920

Classifies hospitality franchises (hotels, motels, inns, rooming houses) as "merchandise" under New Jersey's consumer fraud act, extending consumer protection coverage to franchise agreements.

Prohibits hospitality franchisors from imposing non-compete restrictions lasting more than six months after termination or requiring capital investments over $25,000 more than once every five years unless the franchisee can recover the cost during the remaining agreement term.

Requires franchisors to disclose and turn over to franchisees any rebates, commissions, or kickbacks received from vendors, and prohibits forcing franchisees to use designated suppliers when comparable goods are available elsewhere.

Bans franchisors from imposing undisclosed fees, charging franchisees for negative guest reviews or loyalty program enrollment shortfalls, and selling loyalty points for stays without compensating franchisees at least their lowest advertised rate.

Prevents franchisors from terminating a franchise based on violations of these provisions or from unilaterally changing material contract terms through operations manual updates.