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Alabama SB138 Restricts Franchise Religious Day Operating Requirements

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Summary

Alabama Governor signed SB138 into law on April 9, 2026, prohibiting franchisors from requiring franchisees to operate their businesses on a religious day. The bill passed unanimously in both chambers (Senate 30-1, House 105-0) and provides exceptions for certain circumstances. Franchisors with franchise agreements in Alabama must now accommodate franchisee religious observances.

What changed

Alabama enacted SB138, a new law prohibiting franchisors from requiring franchisees to operate on a religious day. The legislation, signed by the Governor on April 9, 2026, passed with near-unanimous support in both chambers. The bill was amended during the House Commerce and Small Business Committee process before final passage.

Franchisors operating franchise systems in Alabama must ensure their agreements do not mandate operation on days that conflict with franchisee religious beliefs. This law fundamentally alters the operational requirements that franchisors can impose, requiring review of standard agreement terms and potentially renegotiation of existing franchise contracts to include religious day accommodation provisions.

What to do next

  1. Review all existing franchise agreements for provisions requiring operation on religious days
  2. Identify religious days recognized under the new law
  3. Amend franchise agreements to provide religious day accommodations where needed

Archived snapshot

Apr 9, 2026

GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.

ChangeBridge / Alabama / SB138 Signed by Governor SB138 Senate Bill Signed by Governor 2026-04-09

Franchises; prohibit franchisor from requiring franchisee to operate on a religious day, exceptions provided

Bill Details

State Alabama

Session 2026 Regular Session

Chamber Senate

Official Source alison.legislature.state.al.us/bill-search

LegiScan View on LegiScan

Sponsors

Dan Roberts (Sen - R)

Action History

2026-04-09 H Signature Requested 2026-04-09 S Delivered to Governor 2026-04-09 S Enrolled 2026-04-08 S Ready to Enroll 2026-04-08 S Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1260 2026-04-08 H Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1306 2026-04-08 H Motion to Adopt - Adopted Roll Call 1305 11JCJLZ-1 2026-04-08 H Blackshear 1st Amendment Offered 11JCJLZ-1 2026-04-08 H Motion to Adopt - Adopted Roll Call 1304 DG8QQTN-1 2026-04-08 H Commerce and Small Business Engrossed Substitute Offered DG8QQTN-1 2026-04-08 H Third Reading in Second House 2026-02-19 H Read for the Second Time and placed on the Calendar 2026-02-18 H Reported Out of Committee Second House from House Commerce and Small Business DG8QQTN-1 2026-02-12 H Pending House Commerce and Small Business 2026-02-12 H Read for the first time and referred to the House Committee on Commerce and Small Business 2026-02-12 S Motion to Read a Third Time and Pass - Adopted Roll Call 388 2026-02-12 S Third Reading in House of Origin 2026-01-29 S Read for the Second Time and placed on the Calendar 2026-01-28 S Reported Out of Committee House of Origin 2026-01-14 S Pending Senate Fiscal Responsibility and Economic Development 2026-01-14 S Read for the first time and referred to the Senate Committee on Fiscal Responsibility and Economic Development

Votes

2026-02-12 SBIR: Passed by House of Origin Yea: 33 Nay: 0 2026-02-12 Third Reading in House of Origin Yea: 33 Nay: 0 2026-02-12 Motion to Read a Third Time and Pass - Roll Call 388 Yea: 30 Nay: 1 2026-04-08 Gudger Motion to Concur In and Adopt House Amendment - Roll Call 1260 Yea: 33 Nay: 0 2026-04-08 HBIR: Passed by Second House Yea: 105 Nay: 0 2026-04-08 Third Reading in Second House Yea: 105 Nay: 0 2026-04-08 Motion to Adopt - Roll Call 1304 DG8QQTN-1 Yea: 105 Nay: 0 2026-04-08 Motion to Adopt - Roll Call 1305 11JCJLZ-1 Yea: 105 Nay: 0 2026-04-08 Motion to Read a Third Time and Pass as Amended - Roll Call 1306 Yea: 101 Nay: 0

Committee Referrals

2026-01-14 S Fiscal Responsibility and Economic Development 2026-02-12 H Commerce and Small Business

Amendments

2026-02-18 House Commerce and Small Business Reported Out of Committee Second House 2026-04-08 House Motion to Adopt - Adopted Roll Call 1305

Bill Text Versions

2026-01-14 Introduced 0000-00-00 Enrolled

Subjects

Businesses & Financial Institutions Legislative data powered by LegiScan (CC BY 4.0)

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Last updated

Classification

Agency
AL Legis
Published
April 9th, 2026
Instrument
Rule
Legal weight
Binding
Stage
Final
Change scope
Substantive
Document ID
AL SB138 (2026 Regular Session)

Who this affects

Applies to
Franchisors Franchisees Retailers
Industry sector
4231 Wholesale Trade
Activity scope
Franchise agreement terms Religious accommodation compliance Business operating requirements
Geographic scope
US-AL US-AL

Taxonomy

Primary area
Corporate Governance
Operational domain
Compliance
Topics
Consumer Finance Employment & Labor

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