New Jersey A 5050: Establishes Rural Broadband Infrastructure Grant Program in EDA; appropriates $2.5 million in federal funds.

Bill Text

A5050 

ASSEMBLY, No. 5050 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

INTRODUCED MAY 11, 2026

Sponsored by:

Assemblyman� ROBERT J. KARABINCHAK

District 18 (Middlesex)

Assemblyman� STERLEY S. STANLEY

District 18 (Middlesex)

Co-Sponsored by:

Assemblyman Spearman

SYNOPSIS

���� �Hotel Franchisee Fairness and Market Access Act.� 

CURRENT VERSION OF TEXT 

���� As introduced.

�� 

An Act concerning hotel franchisees and supplementing P.L.1971, 
c.356 (C.56:10-1 et seq.).

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� This act shall be known 
as and may be cited as the �Hotel Franchisee Fairness and Market Access Act.�

���� 2.��� The Legislature finds 
and declares that:

���� a.���� Hotel franchisees make 
substantial capital investments and contribute significantly to employment, 
tourism, and tax revenues in the State of New Jersey.

���� b.��� Certain hotel 
franchising practices may impose unreasonable costs, risks, or operational 
constraints on franchisees, including coercive purchasing requirements; lack of 
transparency in vendor rebates; uncompensated loyalty program redemptions; 
unilateral material changes to franchise agreements; territorial encroachment; 
and restrictions on lawful distribution channels. 

���� c.���� It is in the public 
interest to ensure fairness, transparency, and market access in hotel 
franchising while preserving legitimate brand standards related to health, 
safety, and consumer protection.

���� 3.��� As used in this act:

���� �Franchise agreement� means 
any written contract, including amendments, renewals, and extensions, governing 
the franchise relationship between hotel franchisor and franchisee.

���� �Franchisee� means any person 
or entity that operates a hotel pursuant to a franchise agreement with a hotel 
franchisor.

���� �Guest experience� means 
services, amenities, and conditions directly experienced by hotel guests, 
including lodging, safety, cleanliness, and guest-facing brand standards.

���� �Hotel franchisor� means any 
person or entity that grants a franchise to operate a hotel under a brand, 
trademark, trade name, or service mark.

���� �Legitimate third-party 
lodging platform� means a lawfully operating online travel agency, marketplace, 
metasearch service, channel manager, or similar platform that employs 
commercially reasonable consumer protection and fraud prevention practices.

���� �Loyalty program� means any 
guest rewards program operated or controlled by a hotel franchisor.

���� �Material change� means any 
modification that materially alters a franchisee�s financial obligations, 
operational requirements, or contractual rights.

���� �Protected territory� means 
the geographic area in which a franchisee is granted exclusive rights to 
operate a hotel of a particular brand or chain sale.

���� �Rebate, commission, or fee� 
means any payment, discount, credit, or other financial benefit received by a 
hotel franchisor from a vendor arising from franchisee purchases.

���� �Vendor� means any person or 
entity that provides goods or services to a franchisee pursuant to a franchise 
agreement or at the direction of a hotel franchisor. 

���� 4.��� a.� A hotel franchisor 
shall not require a franchisee to purchase goods or services that are not 
directly related to the guest experience as a condition of entering into, 
renewing, extending, or continuing a franchise agreement, unless the franchisee 
provides prior written consent.

���� b.��� A franchisee may choose 
the source of its non-guest facing goods or services, provided that the goods 
and services meet reasonable, operational standards.

���� c.���� A hotel franchisor 
shall not impose penalties, fees, termination, or non-renewal for a 
franchisee�s refusal to purchase goods or services prohibited under this 
section.

���� 5.��� a.� A hotel franchisor 
shall fully disclose to franchisees any rebate, commission, or fee received 
from vendors based on franchisee purchases.

���� b.��� Any amounts attributable 
to a franchisee shall be returned through an itemized reduction in franchise 
fees or direct payment within 60 days.

���� c.���� Required disclosures 
shall be provided annually and maintained for no less than five years.

���� 6.��� a.� A hotel franchisor 
shall not authorize a hotel of the same brand or chain scale within a 
franchisee�s protected territory without written consent or reasonable 
compensation.

���� b.��� If a franchise agreement 
does not specify a protected territory, a default radius of five miles shall 
apply unless otherwise determined by a court.

���� 7.��� a.� A franchisee shall 
be compensated for guest stays booked using points from a loyalty program.

���� b.��� Compensation shall be no 
less than the lowest publicly available room rate for the applicable room and 
dates or the published redemption value, whichever is greater.

���� c.���� A hotel franchisor 
shall not penalize a franc