This bill establishes new regulations for hospitality franchise agreements in New Jersey, supplementing the existing Franchise Practices Act. It defines a hospitality franchise as a written arrangement allowing one party to use another's trade name or trademark in the marketing of goods or services related to accommodations for guests. The bill specifies that hospitality franchises will be considered merchandise under the consumer fraud act, and it applies to franchises where the franchisee maintains a business in New Jersey or where the franchise owner is a resident and derives a significant portion of sales from the state.

The bill outlines various prohibitions on hospitality franchisors, including restrictions on imposing limitations on franchisee employees post-termination, requiring excessive capital investments, receiving undisclosed kickbacks from vendors, and unilaterally changing franchise agreement terms. It also prevents franchisors from imposing new fees not previously disclosed, charging franchisees for guest criticisms, and selling loyalty program points without compensating the franchisee. Additionally, it clarifies that violations of these provisions do not constitute good cause for terminating a franchise agreement.