On April 13, 2026, Virginia Governor Abigail Spanberger signed HB 69/SB 240 into law, which amends the Virginia Retail Franchising Act. This law bans the offer or sale of a franchise in Virginia containing a post-term non-compete provision, after the effective date of July 1, 2026. Existing franchise agreements and those entered into on or before June 30, 2026, are not affected by the new law.
Lathrop GPM’s Franchise and Distribution Practice Group addressed what this change may mean for franchisors in a client alert issued April 14, 2026: https://www.lathropgpm.com/insights/virginia-governor-signs-law-banning-post-term-non-compete-provisions-in-new-franchise-agreements/