Franchises; covenants not to compete. (HB1550)

Introduced By

Del. Glenn Davis (R-Virginia Beach)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Franchises; covenants not to compete. Declares that any covenant not to compete executed on or after July 1, 2020, between a franchisor and any of its franchisees that restricts the ability of a former franchisee to conduct a business that will compete with the franchisor or another of its franchisees is void unless the franchisor or other franchisee has conducted such a business within 150 miles of the former franchisee's authorized area at any time during the 12 months preceding the termination or expiration of the former franchisee's franchise. A former franchisee that suffers damages as a result of a violation may bring an action against its former franchisor. Violations are also subject to imposition of civil penalties by the State Corporation Commission. Read the Bill »


Bill Has Failed


01/10/2020Presented and ordered printed 20104314D
01/10/2020Referred to Committee on Labor and Commerce
01/13/2020Impact statement from SCC (HB1550)
01/23/2020House committee, floor amendments and substitutes offered
01/23/2020Tabled in Labor and Commerce (15-Y 6-N) (see vote tally)

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