DECEPTIVE FRANCHISE PRACTICES ACT

SB 439, the "Deceptive Franchise Practices Act," prohibits franchisors from including unfair terms in agreements with franchisees operating in New Mexico (including non-resident franchisees running local businesses). It bans provisions requiring exclusive purchases from franchisors when comparable alternatives exist, allowing franchisors to compete unfairly in a franchisee's territory, imposing unreasonable price increases on pre-ordered goods, or forcing franchisees to pay indeterminate advertising costs. The bill also prohibits coercive practices like threatening termination to force franchisees into unwanted agreements or purchases. If enacted, it would directly affect franchisees in New Mexico by making specific contractual terms and business practices unlawful.