The Utah House is weighing a bill aimed at protecting franchises from opening on religious holidays or days of worship when doing so would be at odds with an owner’s “sincerely held religious belief.”
Sponsored by Rep. Ken Ivory, R-West Jordan, and a member of The Church of Jesus Christ of Latter-day Saints, HB441 would expand on an initial proposal, outlined in a news release, that focused exclusively on protecting franchises from having to operate on Sundays.
The measure would not affect existing contracts.
If passed as is, however, companies no longer would be able to require franchisees to accept amendments to their contracts demanding operation on “religious days.” They would also be barred from making opening on religious days a requirement for those looking to renew an operation agreement.
The bill, advanced last week by the House Business, Labor and Commerce Committee in an 8-3 vote, currently carves out exceptions for two industries: hotels and car dealerships.
Ivory did not respond to a request for comment, but the measure seems to be, at least in part, a response to the chain bakery Nothing Bundt Cakes’ recent decision to reverse a long-held practice of allowing stores to close on Sundays.
The company, known for its sweet treats, has 10 franchises in Utah, many of which are owned by Latter-day Saints, which advocates avoiding work on Sunday whenever possible.
For Latter-day Saint franchisees Brad Berrett and Kelsey Hunt, who operate Utah stores, the brand’s Sunday-friendly reputation was a determining factor for picking to partner with the company in the first place. To have it reverse course, they previously told The Salt Lake Tribune, feels like a betrayal.
(Francisco Kjolseth | The Salt Lake Tribune) Nothing Bundt Cakes is pictured in the Foothill Village shopping center in Salt Lake City on Tuesday, Jan. 7, 2025.
Melva Sine, president and CEO of the Utah Restaurant Association, said she does not see the measure as likely having a major impact on business operations in Utah. That’s because many franchises already have contracts in place requiring stores to open on specific days.
On the other hand, Tim Ryan, owner of the parent company of most Bout Time Pub & Grub restaurants found in Utah and Colorado, worries that the bill would conflict with best business practices that demand all franchisees operate on the same schedule.
“McDonald’s, as a global company, is open 365 days a year all around the world,” he explained. “Suddenly a franchise owner only wants to be open six days; that’s not going to work for McDonald’s.”
