The Capitol in Salt Lake City is pictured on Thursday, Feb. 6, 2025. (Photo by Spenser Heaps for Utah News Dispatch)
A bill dealing with unexpected contract changes for franchises operating in Utah passed unanimously on the House floor on Friday, making clear that franchisers must be up front about whether someone who goes into business with them must open on Sunday.
The bill is notable in Latter-day Saint-heavy Utah, where shopping and working on Sunday is discouraged for church members.
HB441, sponsored by Rep. Ken Ivory, R-West Jordan, doesn’t prevent franchisers from requiring businesses to remain open on any particular day of the week, Ivory said on the House floor. It requires them to disclose what the expected hours of operation are. Especially on Sundays, which are legal holidays in the state.
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“So that it doesn’t happen what has been happening here that people buy into a business, they invest their life savings … on the representation they can be home with their family on their day of worship,” Ivory said. “And then a couple of private equity groups down the line, they change something in an operation manual and now require them to change their whole way of life.”
The bill now moves to a Senate committee for consideration.
Business traffic has increased across the state with some out-of-state franchises requiring operators to remain open all days of the week. That may not change anytime soon for those who wish to maintain their doors open on Sundays.
However, Ivory hopes that a franchise agreement doesn’t get in the way of those who want to observe the day of worship — at least not without a disclosure in the original franchise agreement.
HB441 has a “franchisee religious exemption,” in which franchisers may not ask franchisees to operate on a religious day, or refuse to renew a franchise agreement over their refusal to open on religious worship days. Any schedule changes outside of the original agreement must be part of an amendment to the contract.
During the debate, Ivory said his bill enhances transparency in businesses and provides assurance to those investing in franchises that the promise of being able to be home on a Sunday is kept.
Rep. Steve Eliason, R-Sandy, said that in the many years he spent auditing franchises, he realized there’s “a dramatic power imbalance between the franchisor and franchisees,” witnessing many ethical and potential legal issues in contract terms or pricing which were not evident to franchisees.
“Clarifying that if that’s the terms you agreed on when you signed the franchise, there shouldn’t be the ability to come in ex post facto and change what was agreed to originally, regardless of what the issue is,” Eliason said. “I don’t think this is about religious freedom. It’s about contract law.”
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