Oregon Code § 650.165·Enacted ·Last updated March 01, 2026
Statute Text
Prohibited franchise conditions.
It shall be a violation of ORS 650.120 to 650.173 for a franchisor to require a
franchisee to agree to the inclusion of a term or condition in a franchise, or
in any lease or agreement ancillary or collateral to a franchise, as a
condition to the offer, grant or renewal of such franchise, lease or agreement,
that:
(1) Requires the
franchisee to waive trial by jury in actions involving the franchisor.
(2) Specifies the
jurisdictions, venues or tribunals in which disputes arising with respect to
the franchise, lease or agreement shall or shall not be submitted for
resolution or otherwise prevents a franchisee from bringing an action in a
particular forum otherwise available under the law.
(3) Requires that
disputes between the franchisor and franchisee be submitted to arbitration or
to any other binding alternative dispute resolution procedure. However, any
such franchise, lease or agreement may authorize the submission of a dispute to
arbitration or to binding alternative dispute resolution if the franchisor and
franchisee voluntarily agree to submit such dispute to arbitration or binding
alternative dispute resolution at the time the dispute arises.
(4) Adversely
alters to a substantial degree the rights and obligations of a franchisee under
any existing franchise contract. [1989 c.716 §4; 1999 c.660 §6; 2007 c.71 §204]